As Provided in the Adopted Budget, on January 1, 2020

Multiple Choice

As provided in the adopted budget, on January 1, 2020 Croton City levies real property taxes of $28 million for General Fund activities, payable in two equal installments, in March and September. The city assumes all taxes will be paid in the fiscal year the taxes were levied. What journal entry should the city make on January 1 in its General Fund?

A) Debit Property taxes receivable and credit Revenues-property taxes for $28 million
B) Debit Property taxes receivable and credit Revenues-property taxes for $14 million
C) Debit Estimated Revenues-property taxes and credit Revenues-property taxes for $28 million
D) Make no journal entry until cash is received