[Eiman.kuwait]

Items 83 and 84 are based on the following information for
Oak City for the calendar year 2012:
Collections during 2012 $500,000
Expected collections during the first sixty days of 2013 100,000
Expected collections during the balance of 2013 60,000
Expected collections during January 2014 30,000
Estimated to be uncollectible 10,000
Total levy $700,000
83. What amount should Oak City report for 2012
property tax revenues in the Statement of Revenues,
Expenditures, and Changes in Fund Balances prepared for
governmental funds?
a. $700,000
b. $690,000
c. $600,000
d. $500,000

83. (c) $600,000
The collections during 2012 of $500,000 and the expected
collections during the first sixty days of 2013 of $100,000
would be reported as property tax revenues for 2012.
Remember that the estimated uncollectible amounts are
not reported on the operating statement as an offset to
revenues, but rather are reported as a contra asset account.
The governmental unit, in calculating the amount of the levy,
factors in what has historically been uncollectible, so that the
revenues in effect have already been adjusted.

84. What amount should Oak City report for 2012 property
tax revenues in the government-wide Statement of Activities?
a. $700,000
b. $690,000
c. $600,000
d. $500,000
84. (b) Under GASB Statement 33, imposed nonexchange
revenues, including property taxes, should be recorded in
the year for which budgeted. In this case, the amount would
be $690,000, the total levy less the estimated uncollectible
amount.

Why on question #83, amount is not reduced by estimated uncollectible, because as they state, ” its already calculated in the levy” but in question #84 amount is reduced by the net uncollectible, since the uncollectible is already taken in count when estimation the levy, so why not take it on 83 but take it on 84

[maverick87]

83. stay in the year 2012. You collected 500,000 + 100,000(collect in 60 day rule) = 600,000. The question is asking for the amount in the “Statement of Revenues, Expenditures, and Changes in Fund Balances prepared for governmental funds.”

84. Question is asking for revenues in the “Govnt Wide Stmt of Activities.” 700,000 – 10,000 = 690,000.
Levy – uncollectible = revenues in Govt Wide stmt activities.

[Eiman.kuwait]

i still dont understand why not reduce the amount by 10 the uncollectable, because it applys on the whole amount which there is an amount inside those ( 500 + 100 ) are estimated to be uncollectible

[Author]

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