The Jackson Independent School District began the year with the following accounts on its Balance Sheet related to property taxes (all amounts are in thousands of dollars). All accounts have normal balances $2,000 400 200 15 355 Allowance for Uncollectible Penalties and Interest.............................................................. Deferred Revenues (S300 Taxes, $55 Penalties and Interest).................................... 355 PREPARE THE NECESSARY JOURNAL ENTRIES. DATES AND EXPLANATIONS SHOULD BE OMITTED. PART 1 1. On January 1, the school district levied property taxes of $8,000. The due date for the taxes is March 31. Taxes are considered delinquent after that date. The school district expects to collect all but 4% of the levy. In addition the district offers a 2% discount if the taxes are paid by February 28, The district expects 40% of the tax to qualify for the discount. DEBIT CREDIT Taxes Receivable- Current Allowance for Uncollectible Taxes- Current Allowance for Discounts on Taxes Revenues - 8,000 320 64 Taxes 7,6161 (plug) 2. Between January 2 and February 28, the district collected $4,800 of the taxes due. Of this amount, $1,300 was due in the preceding fiscal year. The district also collected $130 of penalties and interest during the same time period DEBIT CREDIT 4800 Cash Taxes Receivable - Current Taxes Receivable Delinquent Actual Penalties and Interest Receivable Allowance for Discounts on Taxes Revenues - Pr Taxes Receivable - Current Taxes Hint Additional Taxes collected 70