The balance of the collectible taxes


Prepare general journal entries to record the following transactions in Rockwall City's General Ledger and make adjusting entries, if needed:

  • Rockwall City levied property taxes of $12,000,000 for 2011. The taxes were levied on January 1, 2011. Rockwall expects $80,000 to be uncollectible. Three-fourths of the taxes receivable are expected to be collected within the 2% discount period. Another $1,000,000 of taxes receivable should be collected before year-end but after the discount period. The balance of the collectible taxes is expected to be collected at a uniform rate over the first 10 months of 2012.
  • Rockwall collected $9,100,000 (before discounts) of its taxes receivable prior to the end of the discount period. The balance of the taxes receivable is past due.
  • Rockwall wrote off taxes receivable of $30,000 as uncollectible.
  • Rockwall collected another $900,000 of its taxes receivable after the discount period but before year-end.

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Accounting Basics: The balance of the collectible taxes
Reference No:- TGS0678610

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