Massengale University, a private, nonprofit university, has gross tuition and fees revenue of
$4,000,000 for the semester. Of this amount, $100,000 is not expected to be collected. Which of
the following describes the journal entry that would be recorded?
a. Debit tuition and fees receivable $4,000,000; credit tuition and fees revenue $4,000,000
b. Debit tuition and fees receivable $3,900,000; credit tuition and fees revenue $3,900,000
c. Debit tuition and fees receivable $3,900,000; debit bad debt expense $100,000; credit
tuition and fees revenue $4,000,000
d. Debit tuition and fees receivable $4,000,000; credit allowance for tuition and fees
receivable $100,000; credit tuition and fees revenue $3,900,000