Which entry would be the correct entry on the not-for-profit organization's books to record a donor's gift when the money is simply passing through the not-for-profit organization and creates no direct benefit, and when control of the assets has been relinquished by the donor? $$\begin{array} { l l }
{ \text { DEBIT } } & \text { CREDIT } \
\text { A) Expense-charitable contribution } & \text { Cash } \
\text { B) Refundable advance to charity } & \text { Cash } \
\text { C) Cash } & \text { Liability to beneficiary } \
\text { D) Cash } & \text { Refundable advance } \
\text { E) Cash } & \text { Contribution revenue }
\end{array}$$

Question

Which entry would be the correct entry on the not-for-profit organization's books to record a donor's gift when the money is simply passing through the not-for-profit organization and creates no direct benefit, and when control of the assets has been relinquished by the donor? $$\begin{array} { l l } 
{ \text { DEBIT } } & \text { CREDIT } \
\text { A) Expense-charitable contribution } & \text { Cash } \
\text { B) Refundable advance to charity } & \text { Cash } \
\text { C) Cash } & \text { Liability to beneficiary } \
\text { D) Cash } & \text { Refundable advance } \
\text { E) Cash } & \text { Contribution revenue }
\end{array}$$

Quizplus · Accepted Answer

The correct entry is to debit Cash and credit Liability to beneficiary, as the organization is merely acting as an agent or intermediary, holding the funds temporarily before passing them to the intended beneficiary.

Which Entry Would Be the Correct Entry on the Not-For-Profit