Author Question: Government A allows discounts on taxes. Specifically, taxpayers get a 1 discount on the total tax if ... (Read 63 times)

Deast7027 · **on:** Jul 6, 2018

Government A allows discounts on taxes. Specifically, taxpayers get a 1 discount on the total tax if it is paid within one month of the initial levy.

What would the journal entry be to record the levy of 700,000 if the government anticipates there will be a 2 uncollectible rate and it is anticipated that the discounts will equal 5,000?
dr cr

a. Taxes Receivable 700,000Allowance for Uncollectible Taxes 14,000Allowance for Discounts 5,000Revenues 681,000
b. Taxes Receivable 700,000Revenues 700,000
c. Taxes Receivable 695,000Expenditures 5,000 Allowance for Uncollectible Taxes 14,000Revenues 686,000
d. Taxes Receivable 681,000
Revenues 681,000
e. Taxes Receivable 700,000
Allowance for Uncollectible Taxes 14,000
Revenues 686,000

Question 2

Entries in the purchases journal are posted to the
a. general ledger only.
b. accounts payable ledger only.
c. accounts payable ledger and the purchases ledger.
d. general ledger and the accounts payable ledger.
e. accounts payable ledger and the accounts receivable ledger.