[NinaSun]

During the current year, Knoxx County levied property taxes of $2,000,000, of which 1% is expected to be noncollectable. The following amounts were collected during the current year:

Prior year taxes collected within the 60 days of the current year $50,000

Prior year taxes collected between 60 days and 90 days into the current year 120,000

Current year taxes collected in the current year 1,800,00

Current year taxes collected within the first 60 days of the subsequent year 80,000

What amount of property tax revenue should Knoxx County report in its entity-wide statement of activities.

a. $1,980,000

b. $2,000,000

c. $1,800,000

d. $1.970,000

The answer is “a”. I think the entity-wide is equal to government-wide. So the statement is under economic resources measurement focus and the full accrual basis. Under full accrual basis, the $2,000,000 is earned and should be recorded in full amount. The 1% estimated noncollectable AR should be debit at bad debt expense and credit allowance for doubtful accounts. The revenue shouldnt be deduct by doubtful account. I thinks this should be reconcile from funds accounting to government-wide. But Becker book doesnt mention that. Can anyone justify the answer? Thanks.

AUD-74,75 11/2014
REG-80 04/2015
FAR-74, 91 11/2015
BEC-79 08/2015