When reviewing the financial statements of Crescent City, Councilwoman Peggy Doubleton noticed that the city uses an
Question:
When reviewing the financial statements of Crescent City, Councilwoman Peggy Doubleton noticed that the city uses an Allowance for uncollectible property taxes. This seemed odd to her because the city had recently sold several acres of land that had been seized for nonpayment of property taxes. At the next council meeting, Councilwoman Doubleton made a motion that the city no longer use an Allowance for uncollectible property taxes. She argued that the city had the right to seize property for nonpayment of taxes. As a result it could eventually recover any lost revenue and did not need to provide for uncollectible property taxes. Furthermore, by eliminating this allowance, revenues would be raised by a substantial amount and additional services could be provided without incurring a deficit. Would you vote for Councilwoman Doubleton's motion if you were a member of the city council? Why?
Step by Step Answer:
Introduction To Government And Not For Profit Accounting
ISBN: 9780130464149
5th Edition
Authors: Martin Ives, Joseph R. Razek, Gordon A. Hosch