1- In its General Fund balance sheet at December 31, 2015, Abbotsford City reported Property taxes receivable of $40,000, deferred property tax revenues of $15,000, and an allowance for uncollectible taxes of $0. At the start of the year 2016, Abbotsford City made the following journal entry to record its property tax levy:
Property taxes receivable 950,000
Allowance for refunds and uncollectible taxes 10,000
Revenues - property taxes 940,000
During the year 2016, the city collected all the property taxes receivable outstanding at December 31, 2015. It also collected $920,000 of the receivables recognized at the beginning of 2016, and wrote off $6,000 of receivables against the allowance account. On December 31, 2016, the Abbotsford City finance director made the following determinations regarding the property taxes outstanding at that date:
a. All outstanding property taxes would be collected, so there was no need for the allowance for uncollectible property taxes.
b. The City would collect about $15,000 of the outstanding property taxes receivable during the first 60 days of 2017 and the remainder during the latter part of 2017.
Required: Calculate how much property tax revenues Abbotsford City should recognize in 2016.