Rufo Beach levies a sales tax of 3 percent by piggy-backing its tax on top of the states sales tax. The state mails most of the sales tax collections promptly to Rufo Beach, but a portion of the tax collected during the last quarter of Rufos calendar year arrives so late that Rufo does not consider it available to pay bills. As a result, Rufo reported $125,000 of deferred sales tax revenues in its December 31, 2018 governmental fund balance sheet and $140,000 of deferred sales tax revenues in its December 31, 2019 governmental fund balance sheet. Prepare worksheet adjusting journal entries needed to prepare government-wide financial statements for Rufos year ended December 31, 2019.

Debit Credit Description Deferred sales tax revenues To reverse revenues applicable to 2018. To recognize additional sales tax revenues. Please answer all parts of the