Accounting for Tuition and Fees Revenue

At the beginning of the fall semester, Beaty State University, a public university, billed tuition and fees at a gross amount of $$8,640,000.$ Of this amount, the University awarded scholarships of $$450,000$ and $$90,000$ was believed to be uncollectible. The University also offered a generous tuition discount for the dependents of its employees. An additional $$540,000$ of the gross amount was awarded as employer$-$provided tuition discounts.

$1.$ Record the journal entry for the billing described above. Enter accounts in order of magnitude $($largest to smallest amounts$),$ debits first.

Account Debit Credit

Tuition and fees receivable

$8,640,000$

$0$

Answer

Tuition and fees revenue

$540,000$

$0$

Answer

Tuition and fees discounts and allowances

$0$

$450,000$

Answer

Allowance for uncollectible tuition and fees

$0$

$90,000$

Answer

$2.$ Assume that the transactions described above were in the summer instead

of the fall. The billing was on June $25,$ fiscal year end is June $30,$ and the

semester does not begin until July $15.$ Record the journal entry given these

assumptions. Enter accounts in order of magnitude $($largest to smallest amounts$),$ debits first.

Account Debit Credit

$250$

$0$

Answer

$0$

$110$

Answer

No list available

$450,000$

$0$

Answer

Allowance for uncollectible tuition and fees

$0$

$90,000$

Answer