A well-known celebrity sponsored a telethon for the Help for the Blind Foundation on November 1, 2015. Pledges in the amount of $1,020,000 were called in. Using similar telethon campaigns as a basis, it is estimated that 20% of the pledges will be uncollectible. During 2016, $691,000 of contributions from these pledges were collected. The remainder were uncollectible. Identify the appropriate fund and prepare the journal entries necessary in 2015 and 2016 to record these transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
A well-known celebrity sponsored a telethon for the Help for the Blind Foundation on November 1, 2015. Pledges in the amount of $1,020,000 were called in. Using similar telethon campaigns as a basis, it is estimated that 20% of the pledges will be uncollectible. During 2016, $691,000 of contributions from these pledges were collected. The remainder were uncollectible. Identify the appropriate fund and prepare the journal entries necessary in 2015 and 2016 to record these transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A well-known celebrity sponsored a telethon for the Help for the Blind Foundation on November 1, 2015. Pledges in the amount of $1,020,000 were called in. Using similar telethon campaigns as a basis, it is estimated that 20% of the pledges will be uncollectible.
During 2016, $691,000 of contributions from these pledges were collected. The remainder were uncollectible.
Identify the appropriate fund and prepare the
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Account Titles and Explanation
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Debit
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Credit
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2015
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(To record gross amount of campaign pledges)
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(To record provision for estimated uncollectible pledges)
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2016
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(To record contributions collected)
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(To record uncollectible pledges)
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