In the current year, Generous University awarded scholarships to graduate studen
ID: 2589319 • Letter: I
Question
In the current year, Generous University awarded scholarships to graduate students in the amount of $5,000,000. The recipients are not required to provide any services in return for the scholarships. How should the university record the award?
Scholarship expense $5,000,000
Accounts payable $5,000,000
Tuition deductions—unrestricted student aid $5,000,000
Accounts receivable $5,000,000
Scholarship expense $5,000,000
Accounts receivable $5,000,000
Tuition deductions—unrestricted student aid $5,000,000
Accounts payable $5,000,000
Scholarship expense $5,000,000
Accounts payable $5,000,000
Tuition deductions—unrestricted student aid $5,000,000
Accounts receivable $5,000,000
Scholarship expense $5,000,000
Accounts receivable $5,000,000
Tuition deductions—unrestricted student aid $5,000,000
Accounts payable $5,000,000
Explanation / Answer
Tuition deductions—unrestricted student aid 5000000 Accounts receivable 5000000 Option 2 is correct