Question
For the following situations, make adjusting entries necessary to prepare government-wide financial statements. Where appropriate, take account of the amounts reported in the fund-level financial
For the following situations, make adjusting entries necessary to prepare government-wide financial statements. Where appropriate, take account of the amounts reported in the fund-level financial statements. A city instituted a new sales tax starting January 1, 2019. It collected $600,000 of sales taxes during 2019. When the city prepared its fund-level statements, it accrued an additional $200,000 for sales taxes remitted by larger businesses in January 2020, for taxes collected in the fourth quarter of 2019. However, smaller businesses are not required to remit fourth-quarter collections until April 2020. No accrual was made for those taxes, which were estimated to be $28,000. A debit to_____________________ and a credit to_____________________
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