QUESTION 18

Community Enhancers, a nongovernmental not-for-profit organization, received the following pledges: Unrestricted$400,000; Restricted for capital additions$300,000;All pledges are legally enforceable. However, Community's experience indicates that 15% of all pledges prove to be uncollectible. What amount should Community report as pledges receivable, net of any required allowance account?

1. $700,000
2. $665,000
3. $595,000
4. None of above