For the summer session of 20X1, Armando University (AU), a non-profit organization, assessed its students P1,700,000 (net of refunds), covering tuition and fees for educational and general purposes. However, an amount of P1,500,000 was only expected to be realized. It is because P150,000 were granted to students, and P50,000 tuition remissions were allowed to faculty member’s children attending the university. What amount should AU include in its unrestricted funds as revenues from tuition fees? 2. The League, a non-profit organization, received the following pledges: Unrestricted P200,000 Restricted for Capital Additions 150,000 All pledges are legally enforceable. However, the League’s experience indicates that 10% of all pledges prove to be uncollectible. What amount should the League report as pledges receivable net of any required allowance account?
For the summer session of 20X1, Armando University (AU), a non-profit organization, assessed its students
P1,700,000 (net of refunds), covering tuition and fees for educational and general purposes. However, an
amount of P1,500,000 was only expected to be realized. It is because P150,000 were granted to students,
and P50,000 tuition remissions were allowed to faculty member’s children attending the university.
What
amount should AU include in its unrestricted funds as revenues from tuition fees?
2. The League, a non-profit organization, received the following pledges:
Unrestricted P200,000
Restricted for Capital Additions 150,000
All pledges are legally enforceable. However, the League’s experience indicates that 10% of all pledges
prove to be uncollectible.
What amount should the League report as pledges receivable net of any required
allowance account?
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