(Property tax revenue recognition)
In its General Fund balance sheet at December 31,2013,Marathon City reported Property taxes receivable of $40,000,deferred property tax revenues of $15,000,and an allowance for uncollectible taxes of $0.At the start of the year 2014,Marathon City made the following journal entry to record its property tax levy:
Property taxes receivable 950,000 Allowance for refunds and uncollectible taxes $\quad$10,000
Revenues - property taxes$\quad$940,000
During the year 2014,the city collected all the property taxes receivable outstanding at December 31,2013.It also collected $920,000 of the receivables recognized at the beginning of 2014,and wrote off $6,000 of receivables against the allowance account.On December 31,2014,the Marathon City finance director made the following determinations regarding the property taxes outstanding at that date:
a.All outstanding property taxes would be collected,so there was no need for the allowance for uncollectible property taxes.
b.The City would collect about $15,000 of the outstanding property taxes receivable during the first 60 days of 2015 and the remainder during the latter part of 2015.
Required: Calculate how much property tax revenues Marathon City should recognize in 2014.

Question

(Property tax revenue recognition)
In its General Fund balance sheet at December 31,2013,Marathon City reported Property taxes receivable of $40,000,deferred property tax revenues of $15,000,and an allowance for uncollectible taxes of $0.At the start of the year 2014,Marathon City made the following journal entry to record its property tax levy:
Property taxes receivable 950,000 Allowance for refunds and uncollectible taxes $\quad$10,000
Revenues - property taxes$\quad$940,000 
During the year 2014,the city collected all the property taxes receivable outstanding at December 31,2013.It also collected $920,000 of the receivables recognized at the beginning of 2014,and wrote off $6,000 of receivables against the allowance account.On December 31,2014,the Marathon City finance director made the following determinations regarding the property taxes outstanding at that date: 
a.All outstanding property taxes would be collected,so there was no need for the allowance for uncollectible property taxes.
b.The City would collect about $15,000 of the outstanding property taxes receivable during the first 60 days of 2015 and the remainder during the latter part of 2015.
Required: Calculate how much property tax revenues Marathon City should recognize in 2014.

Quizplus · Accepted Answer

The Answer of (Property tax revenue recognition)
In its General Fund balance sheet at December 31,2013,Marathon City reported Property taxes receivable of $40,000,deferred property tax revenues of $15,000,and an allowance for uncollectible taxes of $0.At the start of the year 2014,Marathon City made the following journal entry to record its property tax levy:
Property taxes receivable 950,000 Allowance for refunds and uncollectible taxes $\quad$10,000
Revenues - property taxes$\quad$940,000 
During the year 2014,the city collected all the property taxes receivable outstanding at December 31,2013.It also collected $920,000 of the receivables recognized at the beginning of 2014,and wrote off $6,000 of receivables against the allowance account.On December 31,2014,the Marathon City finance director made the following determinations regarding the property taxes outstanding at that date: 
a.All outstanding property taxes would be collected,so there was no need for the allowance for uncollectible property taxes.
b.The City would collect about $15,000 of the outstanding property taxes receivable during the first 60 days of 2015 and the remainder during the latter part of 2015.
Required: Calculate how much property tax revenues Marathon City should recognize in 2014.

(Property Tax Revenue Recognition) in Its General Fund Balance Sheet \quad

(Property Tax Revenue Recognition)
in Its General Fund Balance Sheet $\quad$