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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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