On January 1, 2019, a city recorded General Fund property tax revenues of $750,000 but made no provision for uncollectible receivables or tax refunds. During the year, it collected property taxes of $720,000, wrote off $4,000 as uncollectible, and made tax refunds of $3,000. At year-end, the city finance director concluded that $10,000 of the delinquent taxes would be collected in January and February of 2020, $12,000 would be collected later in 2020, and $1,000 would need to be written off as uncollectible. How much should the city report as property tax revenue in its General Fund financial statements for the year 2019?

Question

Quizplus · Accepted Answer

The city will report property tax revenue of $730,000. This includes the $720,000 paid to the town from taxpayers during the year and the $10,000 collected during the first sixty days (January and February) of the next year.

On January 1, 2019, a City Recorded General Fund Property