Property Taxes in the Amount of $3,000,000 Are Billed to City

question 54

Multiple Choice

Property taxes in the amount of $3,000,000 are billed to city property owners. It is estimated that two percent will prove to be uncollectible. In recording this event,

• A)estimated Revenues would be credited for $2,940,000.
• B)bad Debts would be debited for $60,000.
• C)tax Liens Receivable would be debited for $60,000.
• D)allowance for Uncollectible Current Property Taxes would be credited for $60,000.

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Definitions:

Fresh Water

Water that contains minimal amounts of dissolved salts, typically found in lakes, rivers, and streams.

Evaporates

The process by which a liquid turns into a vapor, typically as a result of being heated or exposed to air.

Carbon Cycle

The biogeochemical cycle through which carbon is exchanged among the biosphere, pedosphere, geosphere, hydrosphere, and atmosphere of the Earth.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and is absorbed by plants in photosynthesis.