The City of Charlotte levied property taxes in 2012 in the amount of $10 million.It is estimated that 2% will be uncollectible.During 2012,$9,000,000 was collected,and it is anticipated that $400,000 will be collected during the next 60 days.When moving from the changes in fund balances in the Statement of Revenues,Expenditures,and Changes in Fund Balances to the changes in net assets in the Statement of Activities,what will be the adjustment? (ignore any possible effect resulting from the previous year's deferral)

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Quizplus · Accepted Answer

The adjustment will be an increase of $400,000 because this is the amount that is anticipated to be collected in the next 60 days. The uncollectible amount was already accounted for in the initial property tax levy of $10 million, and the $9,000,000 collected already is reflected in the Statement of Revenues, Expenditures, and Changes in Fund Balances. Therefore, the only adjustment needed is for the $400,000 that will be collected in the next 60 days.

The City of Charlotte Levied Property Taxes in 2012 in the Amount