The Village on Manchester's garbage trucks accidentally sideswiped two parked automobiles during the year ended December...

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The Village on Manchester's garbage trucks accidentally sideswiped two parked automobiles during the year ended December 31, 2021. One case was settled for $3,000 in 2021, and the Village expects to pay that claim during the first week of January, 2022. In the other case, the claimant originally demanded $15,000. The Village attorney thinks that it is probable that the Village can settle the claim for $10,000, but it will take approximately three to four months to settle the case. What amount should the Village report as a claims liability on the general fund's December 31, 2021, balance sheet? The Village on Manchester's garbage trucks accidentally sideswiped two parked automobiles during the year ended December 31, 2021. One case was settled for $3,000 in 2021, and the Village expects to pay that claim during the first week of January, 2022. In the other case, the claimant originally demanded $15,000. The Village attorney thinks that it is probable that the Village can settle the claim for $10,000, but it will take approximately three to four months to settle the case. What amount should the Village report as a claims liability on the general fund's December 31, 2021, balance sheet?

Answer rating: 100% (QA)

As of December 31 2021 the Village should report a claims liability on the general funds balance she... View the full answer