Education

Scholarship Allowance (Tuition Discounting)

Recording a school-funded scholarship that reduces the student's net tuition cost.

Account NameTypeDebit ($)Credit ($)
Scholarship AllowanceContra-Revenue (+)2,000.00-
Student Accounts ReceivableAsset (-)-2,000.00

💡 Accountant's Note

Scholarships are not expenses. Per NACUBO standards, they are 'allowances' that reduce Gross Tuition to Net Tuition on the financial statements.

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