At the beginning of 2018, the balance sheet of a county general fund reports $22
ID: 2571988 • Letter: A
Question
At the beginning of 2018, the balance sheet of a county general fund reports $225,000 in property taxes receivable, of which $100,000 are uncollectible. During the year the county sends out tax bills in the amount of $3,500,000, of which $325,000 are expected to be uncollectible. Cash collections on 2017 taxes are $85,000, and the remaining uncollected taxes are written off. Cash collections on 2018 taxes are $3,300,000. Of the $200,000 uncollected at the end of 2018, $50,000 are expected to be collected within 60 days, and $25,000 are expected to be collected more than 60 days after year-end.
What are total property tax revenues related to 2018 tax bills?
$3,500,000
$3,325,000
$3,350,000
$3,175,000
A.$3,500,000
B.$3,325,000
C.$3,350,000
D.$3,175,000
Explanation / Answer
Cash collections on 2018 taxes are $3,300,000
Of the $200,000 uncollected at the end of 2018, $50,000 are expected to be collected within 60 days
Therefore,
Total property tax revenues related to 2018 tax bills = $3,300,000 + $50,000 = $3,350,000
The correct answer is c.
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