For a Voluntary Health and Welfare Organization,what entry is prepared when the restriction on a cash donation is met?

Question

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When a Voluntary Health and Welfare Organization receives a cash donation with a restriction that is later met, the correct accounting entry is to debit Temporarily Restricted Net Assets - Reclassifications out and credit Unrestricted Net Assets - Reclassifications in. This reflects the movement of funds from a restricted status to an unrestricted status, indicating that the conditions of the donation have been satisfied.

For a Voluntary Health and Welfare Organization,what Entry Is Prepared