Answer:
The expected amount for example is $2,000 ($200,000 * 1 %) should be removed from the revenue & the actual revenue adjusted of $1,980,000 ($200,000 - $2,000) should be provided
Explanation:
From the question given we recall the following statements.
Knoxx County levied property taxes of = $2,000,000
The expected to be uncollectible =1 %
The year prior taxes collected within the first 60 days of the current year= $ 50,000
The year prior taxes collected between 60 and 90 days into the current year = 120,000
The year taxes collected in the current year = 1,800,000
The taxes of the current year collected within the first 60 days of the subsequent year = 80,000
The next step is to know amount of property tax revenue should Knoxx County report in its government-wide statement of activities
Now,
As for the GASB, wide statements are to be reported and by applying the accrual basis.Thus the noncollectable expected amount for example is $2,000 ($200,000 * 1 %) should be removed from the revenue & the actual revenue adjusted of $1,980,000 ($200,000 - $2,000) should be provided In deciding property tax revenue the collection during the year is not important.
