Question

On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $2,561 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.
1. account receivable and2. tuition fees earnd

Answer 1

Answer:

Dr accounts receivable   $ 1,280.50  

Cr tuition fees earned                             $ 1,280.50  

Explanation:

At the end of October, WTI would have taught the class for  half a month, hence the commensurate tuition fees earned should be recognized by debiting accounts receivable as an asset while tuition fees earned is credited accordingly.

Half of the month tuition fees=$2,561*1/2=$1,280.50  

The $ 1,280.50  tuition fees earned for half of October is debited to accounts receivable and recognized as revenue earned by crediting tuition fees earned