Let's look at the question in this manner :-

Total levy - property taxes receivable         700,000

Break-up :-

Current revenue - 1992 & within 60 days      600,000

Non-current - bal of 1993 & Jan 94              90,000

Allowance for uncollectible accounts             10,000

Now,

Let's try to frame the journal entry for current year accrual of property taxes --

DR Property Taxes Receivable -- current      610,000

CR       Revenues          600,000

CR       Allowance for uncollectible accounts      10,000

Note:- Revenues are recorded when measurable and available.

Here, measurable and available revenue out of total levy is $600,000. Allowance for uncollectibles is already separated from collections.

The focus is on receipts -- "collections and expected collections during 1st 60 days of 1993". thus, collections specify measurablity and availability.

I am not sure that this could be the best explanation. It is just based upon my understanding. Hope this helps!!

I find this question confusing. The becker text and lecture say that property tax is deemed measurable and collectible when it is billed/levied.  This does not follow the rule of derived revenues which is recognized if collectible within 60 days of the next year.

My understanding in this problem is that the entire amount of $690,000 has been levied for the year 1992 and hence the full amount needs to be recognized (irrespective of collections)

Please comment.

Not sure that I understand this question. Shouldn't the entry work as follows:

DR. Property Tax receivable 600,0000

CR. Alloawance for uncollectible accounts  10,000

CR. Revenues 590,000

I'm not sure why you had 610,000 as a debit to property tax receivable. Can someone explain ?

Thx