A donor made a pledge in 2011 of $50,000 to a private not-for-profit organization with the intent to pay the cash in 2012 for unrestricted use in 2012.The organization should:
A) Record the pledge receivable and deferred revenue in 2011.
B) Record the pledge as unrestricted revenue in 2011.
C) Record the pledge as temporarily restricted revenue in 2011 and reclassify it to unrestricted in 2012.
D) Record the pledge as temporarily restricted revenue in 2011 and reclassify it to unrestricted in 2012, but only in an amount equivalent to the amount that is spent in 2012.
Correct Answer:
Verified
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