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The document is a pledge record form for fundraising efforts by the Lupus Foundation of America, North Carolina Chapter. It allows individuals to track cash and check donations, including donor information and amounts pledged and received. The form emphasizes the importance of collecting donations for lupus awareness and support, provides instructions for payment methods, and notes that contributions are tax-deductible. It also includes contact information for inquiries and a deadline for submitting pledges.

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How to record pledges in accounting?

The pledge amount is recorded at its full face value on the balance sheet as an asset (pledges receivable). A corresponding liability account (deferred revenue) is established to reflect the organizations obligation to deliver programs or services funded by the pledge.

What is pledging in accounting?

Pledging receivables is when your business uses a receivable as collateral for a loan from the bank to help manage problems with their cash flow. Usually the loan amount is only 70-80% of the invoice receivables or more commonly an amount based on the age of the receivables.

What is the journal entry for pledge?

Journal Entry for Pledging the Receivables Additionally, a memorandum entry may be made to note that certain receivables are pledged. Journal Entry: Debit: Cash (for the amount of the loan received) Credit: Loan Payable (for the same amount)

What is an example of a pledge in accounting?

Example of Accounting for Pledges Example: Nonprofit ABC receives an unconditional pledge of $50,000 from a donor to support its programs. The donor agrees to pay $25,000 immediately and the remaining $25,000 one year later. The organization estimates that 5% of the total pledge amount may be uncollectible.