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	..