Problem 1. The following selected account balances for the City of Hampton on January 1, 2015 are listed below:

Delinquent Taxes Receivable	$34,000	Dr.
Allowance for Uncollectible Delinquent Taxes	11,000	Cr.
Tax Liens Receivable	12,000	Dr.
Allowance for Uncollectible Tax Liens	5,000	Cr.

Instructions

Record the following transactions that occurred during 2015:

a. Current property taxes are levied at $750,000 with a 4% allowance for uncollectible property taxes.

b. Property to which tax liens apply is sold for $6,000 and the account is closed.

c. Current property taxes are collected in the amount of $702,000.

d. Previous delinquent property taxes are converted to tax liens and the current uncollected property taxes are considered delinquent.