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Can someone please explain to me why we’re not using the $10K received prior to year end? If the $10K does not constitute as contribution Revenue, then what is it? Thanks.
“Pica, a nongovernmental not-for-profit entity, received unconditional promises of $100,000 expected to be collected within one year. Pica received $10,000 prior to year-end. Pica anticipates collecting 90% of the contributions and has a June 30 fiscal year-end. What amount should Pica record as contribution revenue as of June 30?
Incorrect A.
$10,000B.
$80,000C.
$90,000D.
$100,000”ANSWER IS C.
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