The following property taxes related transactions occurred during 2017.

1. Central City levied property taxes for $1,800,000. The city estimates 2% of the total levy will prove uncollectable. It also estimates that $800,000 tax levy will be collected within the discount period at a discount rate of 1%.

2. Property taxes for $600,000 were collected within the discount period. Moreover, $700,000 of property taxes were collected after the expiration of the discount period. No more discounts will be provided to the taxpayers.

3. The remaining property taxes with related allowances are classified as delinquent property taxes.

4. The city imposed penalties for unpaid property taxes for $12,000.

5. It initiates foreclosure proceeding against the delinquent taxpayer who owed the city $10,000 as property taxes and $1,000 as penalties.

6. An auctioneer sells the foreclosed property for $35,000 cash and remits the remaining amount to the taxpayer.

7. City wrote off $15,000 as uncollectable property tax receivables and reversed the remaining balance of allowances.

Instructions:

1. Prepare journal entries to record all the above transactions.

2. Compute:

(a) Property tax receivable that should be presented in the balance sheet at the year-end. (b) Revenue-Property tax for the year-end.