Question
For fiscal 2019, Victor Town levied a property tax of $350,000 that was expected to be 95% collectible. By fiscal year end, cash collection is
For fiscal 2019, Victor Town levied a property tax of $350,000 that was expected to be 95% collectible. By fiscal year end, cash collection is $318,000 and the town declares the uncollected amount as delinquent. Of the delinquent taxes, $8,700 is estimated to be collected within 60 days of year end and the rest is uncollectible. In fiscal 2020, Victor Town collects $9,200 of the delinquent taxes and writes off the remaining delinquent taxes.
a. Prepare the journal entries to record all the property tax transactions in fiscal 2019.
b. Determine the amount of tax revenue reported for fiscal 2019.
c. Prepare the journal entries to record the collection and write-off of delinquent taxes.
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