Wilson Center is a private not-for-profit voluntary health and welfare entity. During 2015, it received unrestricted pledges of $600,000, 60 percent of which were payable in 2015, with the remainder payable in 2016 (for use in 2016). Officials estimate that 15 percent of all pledges will be uncollectible.
a. How much should Wilson Center report as contribution revenue for 2015?
b. In addition, a local social worker, earning $20 per hour working for the state government, contributed 600 hours of time to Wilson Center at no charge. Without these donated services, the organization would have hired an additional staff person. How should Wilson Center record the contributed service?
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