The allowance for uncollectible property taxes

Assignment Help Financial Management

Reference no: EM131980957

1- In its General Fund balance sheet at December 31, 2015, Abbotsford 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 2016, Abbotsford City made the following journal entry to record its property tax levy:

Property taxes receivable 950,000

Allowance for refunds and uncollectible taxes 10,000

Revenues - property taxes 940,000

During the year 2016, the city collected all the property taxes receivable outstanding at December 31, 2015. It also collected $920,000 of the receivables recognized at the beginning of 2016, and wrote off $6,000 of receivables against the allowance account. On December 31, 2016, the Abbotsford 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 2017 and the remainder during the latter part of 2017.

Required: Calculate how much property tax revenues Abbotsford City should recognize in 2016.

Reference no: EM131980957

Questions Cloud

Reduced tax rate on dividends affect mnc capital structure : Should the Reduced Tax Rate on Dividends Affect an MNC’s Capital Structure?

The purchase of a new machine for the production of latex : Renegade Industries is considering the purchase of a new machine for the production of latex.

Transactions for profit organization versus not-profit one : What are the major differences in recording transactions for a for-profit organization versus a not-for-profit one, or are there any?

What were flotation costs as fraction of funds raised : The firm incurred $300,000 in legal, administrative, and other costs. What were flotation costs as a fraction of funds raised?

The allowance for uncollectible property taxes : All outstanding property taxes would be collected, so there was no need for the allowance for uncollectible property taxes.

What amount must you invest in account today : What amount must you invest in this account today to fund this annuity for 30 years (the 30th payment will zero out the account)?

What is the npv of this investment project : If the required rate of return is 12%, what is the NPV of this investment project? Should you accept the project?

What is the net present value of the project : If the cost to invest in this project is $8,200, what is the Net Present Value of the project? Should you accept the project?

What is the standard deviation of the? portfolio : Consider the data provided in the table below for a portfolio of assets A and B. What is the standard deviation of the? portfolio?

User Account

All Pages