Hill City has a June 30 fiscal year end and a debt service fund that levies property taxes as one source of funding debt service payments. On January 1, 2021, the debt service fund levies property taxes, with a tax rate of 0.015, taxable assessed property valuation of $20,000,000. The City believes 3% will be uncollectible. Taxes are collected in two equal installments on October 1, 2021 and January 1, 2022.

Record the journal entry in the debt service fund associated with the tax levy.

Record any necessary entry in fiscal year ended June 30, 2022 to recognize revenue associated with the January 1, 2021 levy.