On the first day of its fiscal year (January 1, 2019), 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 2020 and $15,000 between March 5th and August 30th of 2020. How much should the town report as property tax revenue in its General Fund statements for the year 2019?

Question

Dario Mosley

Business

3 July, 08:02

On the first day of its fiscal year (January 1, 2019), 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 2020 and $15,000 between March 5th and August 30th of 2020. How much should the town report as property tax revenue in its General Fund statements for the year 2019?

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Rohan · Answer 1

Answer $575,000

Explanation:

The general fund receivable account at the beginning of the year is derived to plan for the revenue expected during the year.

The amount to be reported in the statement is the actual cash receipt of $575,000 and the amount which is still outstanding for collection is omitted.