The General Fund of the City of Lexington approved a tax levy for the calendar year 2012 in the amount of $2,000,000. Of that amount, $30,000 is expected to be uncollectible. During 2012, $1,750,000 was collected. During 2013, $100,000 was collected during the first 30 days, $70,000 was collected during the next 30 days, and $50,000 was collected during the next 30 days. During the postaudit, you discovered that the City showed $2,000,000 in revenues. What adjusting entry would you need to make, assuming you decided to allow the maximum amount of revenues for 2012, using modified accrual accounting?
A) Debit Revenues and Credit Deferred Revenues in the amount of $50,000.