Accounting for Bad Debts Students at the University of Waterloo were typically billed on a course-by-course basis when they first attended a session. At the time of billing, Omega established a receivable account and a matching deferred-revenue account. Revenue was recognized on a straight-line basis over the length of the applicable course, which is generally 5 to 9 weeks, and deferred revenue was likewise reduced. Students who withdrew from a course were entitled to a partial refund, generally based on the portion of the course they did not attend. Refunds were recorded as a reduction in deferred revenue during the period that a student withdrew from a class. Students tended to finance their education through some combination of Title IV funding, state financial aid, military benefits, tuition assistance from employers, and personal means. Like other educational institutions, the University of Waterloo had no control over the amount of Title IV funding awarded to their students and billed the Department of Education directly so that receivables' collectability was virtually certain. On the other hand, when students paid personally, there was a