Chapter 4, Problem 2.1E

A city levies property taxes of $500,000 for its General Fund for a year and expects to collect all except the estimated uncollectible amount of $5,500 by year end. To reflect this information, the city should record General Fund revenues of

1. a. $500,000 and General Fund expenses of $5,500.
2. b. $500,000 and General Fund expenditures of $5,500.
3. c. $500,000 and no General Fund expenses or expenditures.
4. d. $494,500 and no General Fund expenses or expenditures.