Question
CHAPTER 11 The assignment below uses a simplified scenario. Each entry on questions A through D should have a total debit and credit of $8,000.
CHAPTER 11
The assignment below uses a simplified scenario. Each entry on questions A through D should have a total debit and credit of $8,000.
Ballard University, a private not-for-profit, billed four students for tuition and fees each in the amount of $ 8,000 each for fall semester. The University estimates 25% of tuition and fees will prove to be uncollectible. The University collected $ 10,000 as follows:
Student A paid the full amount billed | $ 8,000 |
Student B was on an assistantship and received a tuition and fee waiver. He is required to work 14 hours a week for one of the Universitys faculty. |
1,000 |
Student C received a scholarship through the Graduate School based on her high test scores. The scholarship waives most tuition and fees and does not require the student to work. |
1,000 |
Student D paid repeatedly with checks that later proved to be without sufficient funds. After the end of the semester, the student reportedly joined a circus and the University could find no forwarding address. |
0 |
Total | $ 10,000 |
Required: Prepare the journal entries to record the billing and subsequent collection or write-off for the transactions listed above.
Answer:
Accounts | Debits | Credits | |
| Accounts Receivable Revenues: Unrestricted Tuition and Fees Allowance for Uncollectible accounts
| 32,000 |
24,000 8,000 |
A | Cash Accounts Receivable
| .. |
.. |
B | Cash Institution Support Expense Accounts Receivable
| .. .. |
.. |
C. | Cash Tuition Discount Unrestricted Student Aid Accounts Receivable
| .. .. |
.. |
D. | Allowance for Uncollectible Accounts Accounts Receivable | .. |
|
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