What journal entry should be made to record a Property Tax Levy of $3,265,306 with an estimated uncollectible amount of 2%?

The appropriate journal entry to record a Property Tax Levy, considering an estimated uncollectible amount, involves recognizing both the total amount of taxes receivable and the anticipated uncollectible taxes. In this specific scenario, the total property tax levy is $3,265,306, and with an estimated uncollectible amount of 2%, it's crucial to adjust for that anticipated loss.

Debiting Taxes Receivable reflects the total amount expected to be collected from property taxes. Simultaneously, crediting Estimated Uncollectible Taxes recognizes the portion of the amounts that the government estimates will not be collected. This aligns with the best practices in governmental accounting, where agencies need to disclose their expectations regarding collections accurately. The other entry would credit Revenues Control, reflecting the revenue that would be deferred due to these uncollectibles; however, in this case, it is accounted for within the estimated uncollectibles.

This journal entry essentializes the understanding that both the revenue anticipated and the expected losses must be reflected in the financial records accurately, ensuring that the financial statements present a true and fair view of the agency's financial standing regarding tax levies.