At the beginning of the year 2013,a town recorded General Fund property tax receivables of $600,000.By year-end (December 31),taxpayers had paid a total $575,000.Based on previous experience,the town expected to collect the $25,000 of delinquent taxes as follows: $10,000 in January and February of 2014 and $15,000 between March and August of 2014.How much should the town report as property tax revenue in its General Fund statements for the year 2013?

Question

Quizplus · Accepted Answer

Property tax revenue is recognized when it is earned, not when it is collected. In this case, the town earned $585,000 of property tax revenue in 2013 ($575,000 collected + $10,000 expected to be collected in January and February of 2014).

At the Beginning of the Year 2013,a Town Recorded General