Journal Entries . The following transactions and events took place during 20x^ R. RE - Establish the Encumbrances carried over from the prior year , $ 10,000 REVENUES WERE Estimated at $ 1 10, 000 ; appropriations of = 108, odd were made . An order for materials placed at the end of the preceding year and estimated to cost $ 10, 000 was received ; the invoice indicated an actual cost of $ 3, 500 Taxes of $ 110,000 accrued ; an allowance of 5` was made for possible losses . Collections were made as follows : current Taxes .. \\ I 90,000 Delinquent Taxes .. I 10,000 Interest and Penalties RECEIVable On TAXES .. I 200 Accounts Receivable* I 5, 000 Total 105, 300 Taxes totaling $ 20,000 have become delinquent ; the balance of Allowance for Uncollectible Taxes - Current was reclas for Uncollectible Taxes - Delinquent . Delinquent taxes of $ 2,000 were written off ; interest and penalties receivable on taxes of $ 20 were also written off Orders were placed for (a) materials estimated to cost $ 20.000 and (b) a truck Estimated to cost $ 28, 0010 Delinquent taxes of $ 200 , which were written off in preceding years , were collected with interest and penalties of $ 35 |$ 25 of which had been previously accrued and written off ) . Payments were made as follows Vouchers Fayable . " I 15, 500 Payrolls .. 45,000 10 . The materials and truck ordered [ in ] ) were received ; bills for $ 21, 000 and $ 20, 000 , respectively , were also received 11. Operating lease payments of $ 15 , 000 were paid . 12 . Interest of $ 600 accrued on delinquent taxes , and an allowance for uncollectible losses thereon of 10%6 was provided . 13 . An order was placed for materials Estimated to cost $ 15, 000