A private university billed $20,000,000 in tuition and fees during an academic year. Graduate assistantships,for which services were required,were awarded in the amount of $1,200,000. Scholarships,for which no services were required,were awarded in the amount of $1,400,000. Provision for bad debt was estimated to be $2,000,000.The net tuition and fees that would be reported in the Statement of Activities would be:

Question

Quizplus · Accepted Answer

The net tuition and fees are calculated by subtracting the scholarships and provision for bad debt from the total billed amount. Graduate assistantships are not subtracted because they require services. Therefore, $20,000,000 - $1,400,000 - $2,000,000 = $16,600,000.

A Private University Billed $20,000,000 in Tuition and Fees During