Which Entry Would Be the Correct Entry to Record Pledges

question 21

Multiple Choice

Which entry would be the correct entry to record pledges of $100,000 for a telethon event to raise money for a not-for-profit public television station? The public television entity estimates that 5% of the funds will be uncollectible. DEBIT CREDIT

• A) Pledges Receivable $100,000 Unrestricted net assets-contributions $100,000
• B) Cash $100,000 Unrestricted net assets-contributions $100,000
• C) Pledges Receivable $100,000 Unrestricted net assets-contributions $95,000 Allowance for uncollectible pledges $ 5,000
• D) Pledges Receivable $95,000 Unrestricted net assets-contributions $100,000 Allowance for uncollectible
• Pledges $5,000
• E) Cash $95,000 Unrestricted net assets-contributions $100,000 Allowance for uncollectible
• Pledges $5,000

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Definitions:

Pulling Strategy

Promoting a product by generating consumer demand for it, primarily through advertising and sales promotion appeals.

Pharmaceutical Company

An enterprise engaged in the research, development, production, and marketing of medications and healthcare products.

Physicians

are medical professionals who diagnose, treat, and help prevent diseases and injuries.

Competitor's Rates

The pricing strategies or rates set by companies competing in the same market or industry.