To record the tax levy and estimate uncollectibles: Debit: Taxes Receivable - Current ($2,005,000 - $65,000) $1,940,000 Credit: Revenues - Property Taxes $1,940,000 To record collections of the current year's levy: Debit: Cash $1,905,000 Credit: Taxes Receivable - Current $1,905,000 To reclassify current taxes receivable and uncollectibles as delinquent: Debit: Taxes Receivable - Delinquent $1,940,000 Credit: Taxes Receivable - Current $1,940,000 To accrue a 2% penalty on delinquent taxes (1% estimated uncollectible): Debit: Taxes Receivable - Delinquent $19,400 Credit: Revenues - Penalties and Interest $19,400 Debit: Estimated Uncollectible Delinquent Taxes $9,700 Credit: Allowance for Uncollectible Delinquent Taxes $9,700 To record payment on vouchers