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 the scholarship allowances?
A) Scholarships and Fellowships Expense 1,600,000 Accounts Receivable 1,600,000
B) Operating Revenue Deduction -Scholarship Allowances 1,600,000
Accounts Receivable 1,600,000
C) Operating Revenue Deduction -Scholarship Allowances 1,600,000
Deferred Revenues 1,600,000
D) Not recorded because it was deducted from tuition revenue before revenue it was recorded

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The Answer of 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 the scholarship allowances?
A) Scholarships and Fellowships Expense 1,600,000 Accounts Receivable 1,600,000
B) Operating Revenue Deduction -Scholarship Allowances 1,600,000
Accounts Receivable 1,600,000
C) Operating Revenue Deduction -Scholarship Allowances 1,600,000
Deferred Revenues 1,600,000
D) Not recorded because it was deducted from tuition revenue before revenue it was recorded

The Following Information Applies to the Next Three Questions