[martimann]

Hello everyone, So I have a solid concept of how to calculate tax revenue reported under Government wide statements, and I understand that under modified accrual accounting for governmental funds we record revenue when measurable and available. In the question below, the revenue recognized for year 1 if we were preparing governmental fund statements would be $590,000 and obviously $690,000 for government wide statements. Can someone just confirm that for me? I really want affirmation on the role of the allowance for uncollectible amounts under govermental fund accounting.

𝐈𝐧 𝐨𝐭𝐡𝐞𝐫 𝐰𝐨𝐫𝐝𝐬, 𝐈 𝐣𝐮𝐬𝐭 𝐰𝐚𝐧𝐭 𝐭𝐨 𝐝𝐨𝐮𝐛𝐥𝐞 𝐜𝐡𝐞𝐜𝐤 𝐰𝐡𝐚𝐭 𝐭𝐡𝐞 𝐫𝐞𝐯𝐞𝐧𝐮𝐞 𝐰𝐨𝐮𝐥𝐝 𝐛𝐞 𝐟𝐨𝐫 𝐆𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭𝐚𝐥 𝐟𝐮𝐧𝐝 𝐬𝐭𝐚𝐭𝐞𝐦𝐞𝐧𝐭𝐬 𝐚𝐧𝐝 𝐠𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭 𝐰𝐢𝐝𝐞 𝐬𝐭𝐚𝐭𝐞𝐦𝐞𝐧𝐭𝐬 𝐰𝐢𝐭𝐡 𝐭𝐡𝐞 𝐬𝐚𝐦𝐞 𝐬𝐜𝐞𝐧𝐚𝐫𝐢𝐨. 𝐓𝐡𝐚𝐧𝐤𝐬 𝐡𝐞𝐫𝐞’𝐬 𝐭𝐡𝐞 𝐪𝐮𝐞𝐬𝐭𝐢𝐨𝐧.

The general fund of Miller City levied property taxes of $700,000 for year 1. The city, which reports on a calendar year, expected the taxes to be collected in the following manner:

• $500,000 during year 1
• $100,000 during the first 60 days of year 2
• $90,000 during the remainder of year 2
• $10,000 is estimated to be uncollectible

AUD - 76
BEC - 80
FAR - 73
REG - 82

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