Professional Documents
Culture Documents
Scholarships
• From outside sources: collect the account
receivable from the donor
• Awarded by the college itself: reduce
accounts receivable and record "Expenses –
Educational and general – student aid"
© Pearson Education, Inc. publishing as Prentice Hall 21-43
College Expenses
Expenses are only in the unrestricted net assets
Classify by function:
– Instruction expense
– Research expense
– Public service expense
– Academic support
– Student services
– Institutional support
– Operation and maintenance of plant
– Student aid
© Pearson Education, Inc. publishing as Prentice Hall 21-44
Tuition Revenues
Accounts receivable 1,000
Unrestricted revenues - tuition and fees 1,000
Tuition reduction: unrestricted - student aid 50
Accounts receivable 50
Expenses - educational and general -
institutional support 30
Allowance for uncollectibles 30
• Tuition is recorded at gross amount
• Tuition waivers are contra-revenues
• Bad debts are recorded as for businesses
• Grouped with institutional support expenses