The Town of Little River expects to collect $50,000 in sales tax from the state government within 30 days of the end of fiscal year 2009. What entry, if any, would Little River make at the end of 2009? $\begin{array}{lcc}
\text { A) Taxes receivable - current } & 50,000 & \
\text { Revenues control }&& 50,000 & \
\text { B) Taxes receivable - deferred } & 50,000 & \
\text { Revenues control }&& 50,000 & \
\text { C) Taxes receivable - current } & 50,000 & \
\text { Due from state government }&&50,000\
\text { D) Due from state government } & 50,000 & \
\text { Revenues control }&& 50,000 & \

\end{array}$

Question

The Town of Little River expects to collect $50,000 in sales tax from the state government within 30 days of the end of fiscal year 2009. What entry, if any, would Little River make at the end of 2009? $\begin{array}{lcc}
\text { A) Taxes receivable - current } & 50,000 & \
\text { Revenues control }&& 50,000 & \
\text { B) Taxes receivable - deferred } & 50,000 & \
\text { Revenues control }&& 50,000 & \
\text { C) Taxes receivable - current } & 50,000 & \
\text { Due from state government }&&50,000\
\text { D) Due from state government } & 50,000 & \
\text { Revenues control }&& 50,000 & \

\end{array}$

Quizplus · Accepted Answer

The town of Little River should make the following entry at the end of fiscal year 2009: 
Taxes Receivable - Current $50,000 
Revenues Control $50,000

There is no need to record a due from the state government account because the $50,000 is a certain and definite amount that is expected to be collected within 30 days. This means it can be recorded as current taxes receivable instead of deferred taxes receivable.

The Town of Little River Expects to Collect $50,000 in Sales