On July 1, 2016, The Village assessed property taxes for the current period in the amount of $700,000, and, based on past history, 2.5% of this will prove to be uncollectible. While most will be collected within the current period, it is estimated that $50,000 will be collected in the next fiscal year by August 31, 2017, and an additional $25,000 will be collected after that.

REQUIRED:

Prepare journal entries to record the above (include all necessary related entries EXCEPT closing and, for simplicity, assume use of cash for payments) in both the Fund-based and Government-wide financial statements. For Fund-based, designate the Fund; for Government-wide, designate the activity. If the entry is the same, you may write same entry for the second set of financials; if there is no entry, write no entry.