Question

[Para. 4-a-9] Current taxes receivable uncollected at year-end, and the related Allowance for Uncollectible Current Taxes account, were both reclassified as delinquent. Of the amount classified as delinquent it was determined $87,010 would not be collected within 60 days of the fiscal year end and would therefore be unavailable for use in the current period. As a result the amount was reclassified as deferred inflows of resources.

Required: Record the reclassification of the current taxes receivable and related allowance for uncollectible account in the General Fund and governmental activities journals. Reclassify $87,010 of property tax revenue to the Deferred Inflows of Resources account in the General Fund journal only.

(Note: To accomplish the reclassification of revenue, debit the revenue account and credit deferred inflows of resources. Select “Deferral” in the [Description] menu in the Detail Journal.)

Answer 1

Particulars (In general fund)	Debit ($)	Credit ($)
At the time of recording property tax revenue. AJE #1. Property tax revenue a/c		87,100
Current taxes receivable	87,010
At the end of the financial year. AJE#2. Property tax revenue a/c	87,010
Deferred inflow of resources-allowance for uncollectable account		87,010
(To record the property tax revenue that would not be collected within 60 days for financial year ending)

Particulars (In governmental activities)	Debit ($)	Credit ($)
Property tax - revenue		87,010
Current taxes receivable	87,010
(To record the property taxes revenue in governmental activities)