In January, Denton Mabrey College received $120,000 in Unearned Tuition Revenuefrom its students for the spring semester, which lasts four months. On January 31, the college should recognize which amount for tuition revenue?
A)$30,000.
B)$60,000.
C)$80,000.
D)$120,000.
E)$90,000.

Question

Quizplus · Accepted Answer

The college should recognize $30,000 as tuition revenue for January because the spring semester lasts four months, and $120,000 divided by 4 months equals $30,000 per month.

In January, Denton Mabrey College Received $120,000 in Unearned Tuition