When reviewing the financial statements of Crescent City, Councilwoman Peggy Doubleton noticed that the city uses an

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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, she moved that the city no longer provide for uncollectible property taxes because the city had the right to seize property for nonpayment of taxes. As a result, it could eventually recover any lost revenue. Further, by eliminating this allowance, revenues could be increased immediately, and additional services could be provided without incurring a deficit. Would you vote for Councilwoman Doubleton’s motion if you were a council member? Why or why not?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Introduction to Governmental and Not for Profit Accounting

ISBN: 978-0132776011

7th edition

Authors: Martin Ives, Terry K. Patton, Suesan R. Patton

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