Which account would you debit to record a revenue transaction in governmental accounting?

In governmental accounting, when recording a revenue transaction, the appropriate account to debit is the Tax Revenues account. This account specifically tracks the inflows of resources due to taxes collected by the government, reflecting the actual revenue earned during the accounting period.

Debiting Tax Revenues increases the amount recognized in the accounts, indicating that the government has earned this revenue, which is essential for accurate financial reporting and budgeting. Proper recognition of tax revenues contributes to the governmental entity's ability to plan for future expenditures and maintain fiscal responsibility.

In contrast, Expenditures would typically be credited when recording expenses, and the Estimated Revenues account is used during fiscal planning to represent anticipated revenues before they are realized. Fund Balance reflects accumulated net resources of the funds and is not directly involved in the recording of current transactions involving revenue.