Question

JE for unavailable revenues (such as property taxes collected more than 60 days after year-end)

Option 1: DR: Property Taxes Receivable CR: Deferred Revenue
Option 2: DR: Unearned Revenue CR: Accrued Revenues
Option 3: DR: Property Taxes Receivable CR: Deferred Inflows of Resources
Option 4: DR: Accounts Receivable CR: Accrued Revenues

Answer 1

The correct option for recording unavailable revenues such as property taxes collected more than 60 days after year-end is to debit Property Taxes Receivable and credit Deferred Revenue.

Step-by-step explanation:

The correct option for recording unavailable revenues such as property taxes collected more than 60 days after year-end is:

Option 1: DR: Property Taxes Receivable, CR: Deferred Revenue

When property taxes are collected more than 60 days after the year-end, they are considered as revenue that has not yet been earned. Therefore, the property taxes should be recorded as a liability, under the account 'Property Taxes Receivable', on the debit side (DR), and recognized as 'Deferred Revenue' on the credit side (CR).