Final answer:
The proper treatment for uncollectible amounts of tax revenue is to report revenues net of uncollectible amounts. This method deducts anticipated uncollectible amounts from gross revenue for a realistic tally of expected governmental revenue.
Step-by-step explanation:
Which of the following best describes the proper treatment for uncollectible amounts of tax revenue? When it comes to accounting for uncollectible tax revenue, governmental accounting standards provide guidance on how to deal with these situations. The correct answer is typically c. Report revenues net of uncollectible amounts. This method reflects a more accurate representation of the revenue that the government can expect to collect. Reporting revenues net of uncollectible amounts means that the anticipated uncollectible amount is deducted from the gross revenue figure, hence providing a realistic picture of the total revenue.
It is not appropriate to report uncollectible amounts as deferred revenue, because this implies that the revenue will be collected in the future, which is not the case for amounts deemed uncollectible. Similarly, bad debt expenditures are not typically used in governmental accounting to account for tax revenue, as it is more common in business accounting. Lastly, recording it as a bad debt expense might also not align with the accrual basis of accounting used in government financial reporting, where revenues are matched with the time period in which they are earned, not necessarily when they are collected.