Question

When making its year-end entries, the city's accountant determines that $20,000 of the city's remaining current property taxes receivable in its General Fund would not be collected within the first sixty days of the next fiscal year but would be collectible later in that year. At year-end, the city should report a $20,000 credit to:

Answer 1

The answer is: The Deferred Revenues - Property Taxes account

Step-by-step explanation:

The GASB's 60 days rule states that when a government entity (in this case the city government) expects to receive revenue after February 28, they should record that revenue as Deferred Revenue since it cannot be considered available revenue.