During the current year, the town of Salo Alto recorded the following transactions related to its property taxes.Levied property taxes of $3,300,000, of which 2% is estimated to be uncollectible.Collected current property taxes amounting to $2,987,500.Collected $26,500 in delinquent taxes and $2,400 in interest and penalties on the delinquent taxes. These amounts had been recorded as Deferred Inflows of Resources in the prior year.Imposed penalties and interest in the amount of $3,750 but only expects to collect $3,100 of that amount. None is expected to be collected this year or within 30 days of year-end.Reclassified uncollected taxes as delinquent. These amounts are not expected to be collected within the first 60 days of the following fiscal year.Prepare the journal entry. (If no entry is required for a transaction or event, select "No Journal Entry Required" in the first account field.)

Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Answered: During the current year, the town of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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During the current year, the town of Salo Alto recorded the following transactions related to its property taxes.

Levied property taxes of $3,300,000, of which 2% is estimated to be uncollectible.
Collected current property taxes amounting to $2,987,500.
Collected $26,500 in delinquent taxes and $2,400 in interest and penalties on the delinquent taxes. These amounts had been recorded as Deferred Inflows of Resources in the prior year.
Imposed penalties and interest in the amount of $3,750 but only expects to collect $3,100 of that amount. None is expected to be collected this year or within 30 days of year-end.
Reclassified uncollected taxes as delinquent. These amounts are not expected to be collected within the first 60 days of the following fiscal year.

Prepare the journal entry. (If no entry is required for a transaction or event, select "No Journal Entry Required" in the first account field.)

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