Task: The recognition of revenue from fines does not necessarily reflect the amount earned by merely issuing tickets. In August 2008, the last month of its fiscal year, GoldwaitheTownship issued $88,000 worth of tickets for parking and traffic violations. Of these, the township collected $45,000. It expects to collect an additional $20,000 within sixty days of the close of the fiscal year and to collect $3,000 subsequent to that. It will have to write off the balance. The tickets are due; the protest period expires on September 15.
Question 1. How much revenue should the township recognize from the tickets issued in August 2008? Explain.
Question 2. How might your answer change with respect to the township's government-wide statements?