QUESTION 6 Property taxes become a lien against Baker's property on May 1, 2016. The actual amount of property taxes of $24,000 is determined on May 1 and paid in two installments on July 10 and September 10. (There was no estimated property tax amount since the actual amount is known.) What entry should the company record on July 31 to recogne property tax expense? Debit: Property tax expense $2,000 Credit: Prepaid property tax $2,000 Debit: Property tax expense $2,000 Debit: Prepaid property tax $10,000 Credit: Cash $12,000 Debit: Property tax expense $2,000 Credit: Prepaid property payable $2,000 Debit: Property tax expense $2,000 Debit: Property tax payable $10,000 Credit: Cash $12,000