to record collecting taxes, other receivables, and other revenues (the taxes and the receivables were previously accrued; the revenues are being recognized on a cash basis)
D-Taxes Receivable-Delinquent, C-Taxes Receivable-Current, D-Allowance for Uncollectible Taxes-Current, C-Allowance for Uncollectible Taxes-Delinquent
to record reclassifying of taxes as delinquent (taxes not paid by a current date become delinquent. This situation allows government to force taxpayers to also pay penalties and interest on delinquent taxes. Also, this event is not related (directly) to taxes that are unavailable.)
D-Vouchers Payable, C-Cash
to record paying amounts owed
D-Cash, C-Revenues-Interest and Penalties
Assume someone owes $100 in delinquent taxes and $30 in penalties and interest (assume the interest was not previously accrued). The person makes a $25 payment. What would be the journal entry to record the receipt of $25?