The entry to record the billing of taxes by a government is: Taxes Receivable de

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

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