A Not-For-Profit Organization Received Unrestricted Pledges of $200,000, and Believes

question 6

Multiple Choice

A not-for-profit organization received unrestricted pledges of $200,000, and believes based on past experience that 95% of them will be paid. What entry should be made to record the pledges?

• A)
• \[\begin{array} { | l | l | l | }
• \hline & \text { Debit } & \text { Credit } \\
• \hline \text { Pledges Receivable } & \$ 190,000 & \\
• \hline \text { Donation Revenue } & & \$ 190,000 \\
• \hline
• \end{array}\]
• B)
• \[\begin{array} { | l | l | l | }
• \hline & \text { Debit } & \text { Credit } \\
• \hline \text { Pledges Receivable } & \$ 200,000 & \\
• \hline \text { Provision for Uncollectible Pledges } & & \$ 10,000 \\
• \hline \text { Donation Revenue } & & \$ 190,000 \\
• \hline
• \end{array}\]
• C)
• \[\begin{array} { | l | l | l | }
• \hline & \text { Debit } & \text { Credit } \\
• \hline \text { Pledges Receivable } & \$ 200,000 & \\
• \hline \text { Donation Revenue } & & \$ 200,000 \\
• \hline \text { Bad Debt Expense } & \$ 10,000 & \\
• \hline \text { Provision for Uncollectible Pledges } & & \$ 10,000 \\
• \hline
• \end{array}\]

Recognize ethical decision-making approaches and their applications in organizational and individual decision-making processes.

Understand the concept of temporal discounting and its influence on decision-making.

Grasp the principles of error management theory and its applications in social interactions and decision-making.

Comprehend the certainty effect and its impact on choices.

---

Definitions:

X-intercepts

The points where a graph crosses the x-axis, indicating where the value of \(y\) is zero.

Y-intercepts

Points where a graph intersects the y-axis, typically represented as (0, y).

Sketch

A graphical representation or rough drawing of a concept, object, or scenario.

Equation

A mathematical statement asserting the equality of two expressions, typically involving one or more variables.