Golden Path,a Labor Union,had the Following Receipts and Expenses for the Year

question 65

Multiple Choice

Golden Path,a labor union,had the following receipts and expenses for the year ended December 31,20X8:
The union's constitution provides that 12 percent of the per capita dues be designated for the strike insurance fund to be distributed for strike relief at the discretion of the union's executive board.
-Based on the information provided,in Golden Path's statement of activities for the year ended December 31,20X8,what amount should be reported under the classification of program services?

• A)$720,000
• B)$910,000
• C)$440,000
• D)$760,000

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Definitions:

Credit Card

A payment card issued to users as a method of payment allowing the cardholder to pay for goods and services based on the holder's promise to pay for them.

Journal Entry

A record in the books of accounts that shows a business transaction and its effect on the company's finances.

Percent of Receivables Method

An accounting method used to estimate the amount of accounts receivable that will not be collected by calculating a percentage of receivables deemed uncollectible.

Uncollectible Accounts Receivable

Accounts from customers that are considered unrecoverable, leading to a write-off as a bad debt expense.