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(PROPERTY TAXES)
GVHD:TS.PhmQuangHuy
Trnhby:Nhm1
THNH VIN:
2,500,000
50,000
2,450,000
This entry assumes that 2% of property tax levies are not collectible and
that the rest of the taxes will be collected either during the current year or
within not more than 60 days thereafter it recognizes revenue for 98% of
the amount billed.
Uncollectible taxes are revenue adjustments
Cash 1,900,000
Taxes receivable current
1,900,000
600,000
600,000
50,000
150,000
150,000
November 1, 2014
Allowance for uncollectible taxes delinquent 5,000
Taxes receivable delinquent
5,000
87,750
87,750
Adjustment procedures
Governments must record a liability, instead of revenue for taxes not
collected by year-end or within 60 days thereafter. Therefore taxes
became legally available to finance expenditures as deferred taxes
Revenue
312,250
Deferred revenue
312,250
(= $400,000 $87,750)
$ 400,000
Assets$2,450,000
Cash $2,050,000
Taxes receivable delinquent (net)
$400,000
$312,250
$2,137,500
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