[Mike J]

Something confused me toward the end of Jeff’s NINJA Blitz on NFP,

He said that Scholarships are a reduction of revenue and netted against Tuition. However, I thought tuition and fees are shown net of scholarships. Or, is tuition shown at the gross amount, net of class cancellations?

Maybe I’m getting a little punchy from studying, but this is making me feel like I’m trying to fill-out a line-up with Abbott. https://www.youtube.com/watch?v=kTcRRaXV-fg But I digress.

I would greatly appreciate clarification on BOTH how to deal with scholarships and tuition.

Thanks.

[Peterman25]

This is straight from my Roger FAR book…

Tuition and scholarships are revenue – if you go to the school it is a revenue.

and then provides this JE example

DR cash 12,000

DR scholarship expense 10,000

DR tuition remission 8,000

CR tuition revenue 30,000

BEC 7/14 - PASS
FAR 10/14 - PASS
AUD 1/15 - PASS
REG 4/15 - PASS

AZ license - Official 8/20/2015

[Mike J]

Sorry I didn't get back to you earlier. This makes sense. Although, if you work for the school it isn't a contra revenue account but compensation expense.

[Author]

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