Refer to the previous question. What amount of tax revenues should be recorded in the Revenues Subsidiary Ledger for the transaction?

a. $744,310.

b. $759,500.

c. $775,000.

d. None of the above-revenues should only be reported in the Revenues Subsidiary Ledger as the cash is actually received.

Data from the previous Question

Assume that Nathan County has levied its current year taxes and all revenue recognition criteria for property taxes have been met. The amount levied was $775,000, of which 2% is deemed to be uncollectible (based on historical experience). Which of the following entries would be made in the General Fund?

Transcribed Image Text:

a. Taxes Receivable-Current Tax Revenues b. Taxes Receivable-Current Tax Revenues c. Taxes Receivable-Current ..... Allowance for Uncollectible Taxes Tax Revenues d. Taxes Receivable-Current Bad Debt Expenditures Allowance for Uncollectible Taxes Tax Revenues $775,000 $759,500 $775,000 $775,000 15,500 $775,000 $759,500 $ 15,500 759,500 $ 15,500 775,000