The journal entry to record the prior year's deferred Inflows: property taxes (those expected to be collected more than 60 days beyond year-end)as revenue in the current year would include:

Question

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The journal entry to record the prior year's deferred inflows of property taxes as revenue in the current year would include a debit to Deferred Inflows: Revenues (to reduce the balance of the deferred inflows account) and a credit to Revenues Control (to recognize the revenue in the current year). Therefore, choices B and C would both be included in the journal entry.

The Journal Entry to Record the Prior Year's Deferred Inflows