The entry to record the billing of taxes by a government is: Taxes Receivable de
ID: 2595989 • Letter: T
Question
The entry to record the billing of taxes by a government is:
Taxes Receivable debit Revenue credit (Incorrect)
Taxes Receivable - current debit and Revenue and estimated Uncollectable accounts credit
Cash debit and Revenue from Taxes credit
There is no entry until the tax money is received
Taxes Receivable debit Revenue credit (Incorrect)
Taxes Receivable - current debit and Revenue and estimated Uncollectable accounts credit
Cash debit and Revenue from Taxes credit
There is no entry until the tax money is received
Explanation / Answer
The amount of taxes is billed but not yet collected/ received, the entry will be -
Debit - Taxes Receivable - Current
Credit - Revenue and estimated Uncollectable accounts