The General Fund levies taxes of $3,750,000 during the fiscal year, 1% of which is deemed to be uncollectible. $3,650,000 was collected or met the availability criteria. How much revenue should be recorded in the government-wide financial statements?

Question

Quizplus · Accepted Answer

The amount of revenue that should be recorded in government-wide financial statements is the amount that is actually available to be spent by the government. From the $3,750,000 of taxes levied, 1% is deemed uncollectible, which equals $37,500. Therefore, the amount available for spending is $3,750,000 - $37,500 = $3,712,500. This is the amount that should be recorded in the government-wide financial statements.

The General Fund Levies Taxes of $3,750,000 During the Fiscal