Question, per Becker Tuition and Fees should be reported at gross amount. Scholarships, tuition, waivers, and similar reductions are considered either expenditures or a separately displayed allowance reducing revenue.
Ninja: Tuition and fee revenues should be reported net of scholarship allowances and net of uncollectible amounts. This is true for all government colleges and universities. was this part of the change in Governmental Accounting effective for Jan?
See MCQ below
For the fall semester of 20X1, State University, a government university, assessed its students $3,000,000 for tuition and fees. The net amount realized was only $2,500,000 because tuition and fee waivers of $400,000 were given and uncollectible amounts of $100,000 were estimated.
What amount should State University report for the period as operating revenues from tuition and fees?
A.
$2,500,000
B.
$2,600,000
C.
$2,900,000
D.
$3,000,000
I chose D per Becker, but per Ninja it should be A :Tuition and fee revenues should be reported net of tuition discounts and allowances with the discount or allowance amount parenthetically disclosed on the face of the statement. Tuition waivers are a kind of discount that lowers net tuition received from specific students. Uncollectible accounts are recognized with the use of an allowance for government college and university accounting.
.