8:

Central City rebates $12,000 to taxpayers who had paid their 2012 taxes, but who successfully appealed their tax assessments. The journal entry to record this transaction is

a.

Debit deferred property taxes $12,000; Credit cash $12,000.

b.

Debit allowance for refund $12,000; Credit property tax revenue $12,000.

c.

Debit allowance for refund $12,000; Credit property tax receivable $12,000.

d.

Debit allowance for refund $12,000; Credit cash $12,000.