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Allowance for Uncollectible Taxes

Cash

Deferred Inflows of Resources - Property Taxes

Net Position

Property Taxes Receivable

Revenues - Property Taxes

No Debit Entry Needed

No Credit Entry Needed

Property tax revenue transactions and measurement in financial statements Honesdale levies property taxes in March of each year to help finance the General Fund expenditures for the calendar year. Property owners are required to pay the taxes in equal installments in April and October. Taxes remaining uncollected are declared delinquent at the end of the year. The facts regarding property taxes levied and collected for calendar years 2021 and 2022 are as follows: 2021: Honesdale levied property taxes of $1,400,000, anticipating the entire amount to be collected. It actually collected $1,300,000 during the year. When the village prepared its financial statements, it assumed all the delinquent taxes would be collected during 2022: $74,000 in the first 60 days and the remaining $26,000 later in 2022. 2022: Regarding the $100,000 of delinquent 2021 taxes, Honesdale collected $80,000 in the first 60 days of 2022 and $16,000 during the rest of 2022; the village wrote off the remaining $4,000 as uncollectible. For calendar year 2022, Honesdale levied property taxes of $1,460,000, again expecting the entire amount to be collected. It actually collected $1,380,000 in the year of the levy. When it prepared its 2022 financial statements, the village assumed $74,000 of the delinquent 2022 taxes would be collected during 2023: $60,000 in the first 60 days and $14,000 later in the year. It established an allowance of $6,000 for uncollectible taxes. a. Prepare journal entries to record the year 2021 transactions in the General Fund, including the year-end adjustment needed to prepare the fund financial statements. Do not make an entry to reclassify property taxes receivable as delinquent. If no entry is necessary, select 'No debit (or credit) entry needed in the account fields and enter 0 in the amount fields. Account Debit Credit To record 2022 adjustment for unrecognizable tax revenues. To record 2022 adjustment for unrecognizable tax revenues.