Jordan made a $100,000 contribution to the Appo Society, a not-for-profit organization. Jordan stipulated that his contribution be used for the organization's breakfast program in the next year. How should Appo record the contribution at the time of contribution?

Question

Quizplus · Accepted Answer

Since Jordan stipulated that his contribution be used in the next year, it is considered a conditional or restricted contribution. Therefore, the contribution should be recorded as a deferred contribution until the conditions are met for it to be recognized as revenue. Once the organization uses the funds for the breakfast program in the next year, it can be recognized as revenue at that time.

Jordan Made a $100,000 Contribution to the Appo Society, a Not-For-Profit