Prepare the journal entries to reclassify amounts

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Question 1 - At year-end, the uncollected amount of current property taxes receivable and related estimated uncollectible amount were reclassified as delinquent. Interest and penalties of $875 were also levied, of which $131 was estimated as uncollectible and $684 was classified as a deferred inflow of resources, the remainder was recognized as revenue.

Required - Prepare the journal entries to reclassify amounts as indicated; to accrue interest and penalties, and related revenues and deferred inflow of resources.

Question 2 - Of the amount of current property taxes classified as delinquent in 6-d-8, it was determined based on history that $7,440 would not be collected within 60 days of the fiscal year end.

Required - Reclassify the revenues as deferred inflows of resources.

Reference no: EM133167233

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