The adjustment for estimated property taxes would include a
A)credit to Property Taxes Payable.
B)debit to Unearned Property Taxes.
C)credit to Property Taxes Expense.
D)credit to Cash.

Question

Quizplus · Accepted Answer

A credit to Property Taxes Payable is correct because when adjusting for estimated property taxes, you are recognizing a liability for taxes that have been incurred but not yet paid, hence increasing Property Taxes Payable.

The Adjustment for Estimated Property Taxes Would Include a