1. Centre College, a private liberal arts college in Central Kentucky, charged (billed) tuition and fees of $50,000 based on the registration of students; Centre provided scholarships of $12,000 to the registered students. The entry to bill the tuition and fees and scholarships would include a:

A. Debit to Tuition and Fees, $50,000.

B. Debit to Tuition Discounts and Allowances, $12,000.

C. Credit to Tuition and Fees, $38,000.

D. Credit to Tuition Discounts and Allowances, $14,000.

2. Dogs-are-Us, an animal shelter for dogs, contacted a donor, Marie Pedigree, who today promised to donate $10,000 to be used to pay for a dog trainer; she, however prefers to pay in $2,000 installments over the next five years. The first installment will be received at the end of year 1. After applying a discounting factor, the net realizable value of the full donation is $8,750. The journal entry for the pledge would include a:

A. Credit to Contributionswithout donor restrictions, $8,750.

B. Credit to Discount on Contributions Receivable, $1,250.

C. Debit to Cash, $10,000.

D. Debit to Contributions Receivable, $8,750.

For questions 3 and 4: Faith Hospital has over 1,000 beds and performs major surgeries. Faith Hospital billed an insurance provider for a major medical procedure for $30,000.

3. The entry for the billing to the insurance provider would include a:

A. Debit to Contractual Adjustment, $30,000.

B. Debit to Provision for Uncollectible Accounts, $30,000.

C. Credit to Patient Revenue, $30,000.

D. Credit to Contractual Adjustment, $30,000.

4. The insurance provider paid only $24,000, which was the final settlement. The journal entry to record the entry for the contractual adjustment would include a:

A. Debit to Cash, $24,000.

B. Credit to Contractual Adjustment, $6,000.

C. Debit to Contractual Adjustment, $24,000.

D. Credit to Accounts Receivable, $6,000.