Which of the following best describes the proper treatment for uncollectible amounts of taxes?
A) Report as bad debt expense.
B) Report as deferred inflow of resources.
C) Report as bad debt expenditures.
D) Report receivables net of uncollectible amounts.

Question

Quizplus · Accepted Answer

The proper treatment for uncollectible amounts of taxes is to report receivables net of uncollectible amounts. This means that the government should reduce its reported receivables by the amount it does not expect to collect, rather than recording it as an expense or deferring it as a resource.

Which of the Following Best Describes the Proper Treatment for Uncollectible