During the annual fundraising drive, the Cancer Society raised $900,000 in pledges of financial support for their general operations.By the fiscal year-end, the Society had collected $600,000 of the pledges.The Society estimates that 10% of the remaining pledges will be uncollectible.The NET amount of revenue the Society should recognize during the current year from this pledge drive is

Question

Quizplus · Accepted Answer

The Society should recognize revenue for the portion of pledges received and estimated to be collectible. 
Amount recognized = $600,000 + (90% x ($900,000 - $600,000)) 
Amount recognized = $870,000

During the Annual Fundraising Drive, the Cancer Society Raised $900,000