24:

Property taxes of $1,000,000 were levied. The city estimates that 2% of the total levy will prove uncollectible and 1% provision for discount. The journal entry to record this transaction is

a.

Debit property tax receivable 1,000,000; credit allowance for uncollectable 10,000, revenue- property taxes 990,000.

b.

Debit property tax receivable 1,000,000; credit allowance for uncollectable 20,000, allowance for discount 10,000, revenue- property taxes 970,000.

c.

Debit property tax receivable 1,000,000; credit allowance for uncollectable 20,000, revenue- property taxes 980,000.

d.

Debit property tax receivable 970,000, allowance for uncollectable 20,000, allowance for discount 10,000; credit revenue- property taxes 1,000,000.