The following information applies to the next three questions:
Tuition and fees for the Northern University was assessed at $22,000,000. Scholarship allowances, for which no services are required, were $1,600,000 and graduate assistantships, for which services are required, were $1,000,000.
-What is the journal entry to record tuition revenue?
A) Accounts receivable 20,400,000 Operating Revenue-Student Tuition & Fees 20,400,000
B) Accounts Receivable 22,000,000 Operating Revenue-Student Tuition & Fees 22,000,000
C) Accounts Receivable 19,400,000 Operating Revenue-Student Tuition & Fees 19,400,000
D) Accounts Receivable 21,000,000 Operating Revenue-Student Tuition & Fees 21,000,000

Question

Quizplus · Accepted Answer

The total tuition and fees assessed, $22,000,000, is recorded as Operating Revenue-Student Tuition & Fees.

Note: Choice C is incorrect because it subtracts the scholarship allowances, which are not part of tuition revenue. Choice A is incorrect because it reflects a lower amount than the total assessed tuition and fees. Choice D is incorrect because it reflects a higher amount than the total assessed tuition and fees.

The Following Information Applies to the Next Three Questions