Bluestar University has a fiscal year that ends on June 30.The 2019 summer session of the university runs for 60 days from June 11 through August 9.Total tuition paid by students for the summer session amounted to $240,000.How much revenue should be reflected in the fiscal year ended June 30, 2019?

Question

Quizplus · Accepted Answer

The revenue should be recognized proportionally for the period within the fiscal year. From June 11 to June 30, there are 20 days, which is one-third of the 60-day session. Therefore, one-third of $240,000 is $80,000.

Bluestar University Has a Fiscal Year That Ends on June