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
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The interest receivable should be reported separately as a current asset. The allowance for doubtful accounts should be deducted from accounts receivable.
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