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Welbrook Company gave $50,000 to a nongovernmental, not-for-profit charity with instructions that the funds be transferred to Brad Davis, an individual who lost his home
Welbrook Company gave $50,000 to a nongovernmental, not-for-profit charity with instructions that the funds be transferred to Brad Davis, an individual who lost his home due to a flood. The not-for-profit would:
A. Not record the transaction, because the money is going directly to the intended recipient.
B. None of these
C. Do either of the above, depending upon the policy of the not-for-profit.
D. Record the $50,000 cash and credit temporarily restricted revenue.
E. Record the $50,000 cash and credit a liability.
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