The Red Cross, a VWO, has previously received a contribution that was restricted to use for the care of hurricane victims only. In the current year, there was a hurricane and the Red Cross used $50,000 of the contribution to provide for the care of the victims of the hurricane. Which entry properly records this transaction?
a.
RCF Debit Expenses - hurricane victim care $50,000
Credit Cash $50,000
b.
RCF Debit Temporarily restricted asset reclassifications out $50,000
Credit Cash $50,000
UCF Debit Expenses - hurricane victim care $50,000
Credit Unrestricted asset reclassifications in $50,000
c.
UCF Debit Expenses - hurricane victim care $50,000
Credit Cash $50,000
d.
None of the above