(Tax discounts and deferred property taxes)

The City of Snape allows taxpayers who pay their property taxes by the end of the fiscal year to take a 3 percent discount for prompt payment. The city budgets, as Estimated revenues, the amount it actually expects to receive. During FY 2004 the city sent bills to property owners totaling $\$ 150,000$ (gross amount). Two-thirds of the amount billed (less discounts) was received by the end of the year. The remainder, $\$ 50,000$, will not be collected until the middle of the following year.

Required: 1. Prepare an entry recording the collection of property taxes in FY 2004.

2. Prepare a year-end adjusting entry recording FY 2004 property taxes expected to be collected in FY 2005.