At the beginning of the fall semester, Beaty State University, a public university, billed tuition and fees
Question:
At the beginning of the fall semester, Beaty State University, a public university, billed tuition and fees at a gross amount of $2,400,000. Of this amount, the University awarded scholarships of $125,000 and $25,000 was believed to be uncollectible. The University also offered a generous tuition discount for the dependents of its employees. An additional $150,000 of the gross amount was awarded as employer-provided tuition discounts.
1. Record the journal entry for the billing described above. Enter accounts in order of magnitude (largest to smallest amounts), debits first.
2. Assume that the transactions described above were in the summer instead of the fall. The billing was on June 25, the fiscal year-end is June 30, and the
semester does not begin until July 15. Record the journal entry given these assumptions. Enter accounts in order of magnitude (largest to smallest amounts), debits first.
LIST OF ACCOUNTS TO CHOOSE FROM: Allowance for Uncollectible Tuition and Fees Tuition and Fees Discount and Allowances Tuition and Fees Receivable Tuition and Fees Revenue No Debit Entry Needed No Credit Entry Needed
