On July 1, year 2, Ran County issued realty tax assessments
for its fiscal year ended June 30, year 3. On September 1, year 2,
Day Co. purchased a warehouse in Ran County. The purchase
price was reduced by a credit for accrued realty taxes. Day did
not record the entire year’s real estate tax obligation, but instead
records tax expenses at the end of each month by adjusting prepaid
real estate taxes or real estate taxes payable, as appropriate.
On November 1, year 2, Day paid the first of two equal installments
of $12,000 for realty taxes. What amount of this payment
should Day re-cord as a debit to real estate taxes payable?