A private not-for-profit health care entity provides its patients with services that would normally be charged at $1 million. However, it estimates a $200,000 reduction because of contractual adjustments. It expects another $100,000 reduction because of bad debts. Finally, the organization does not expect to collect $400,000 because this amount is deemed to be charity care. Which of the following is correct? Patient service revenues = $1 million; net patient service revenues = $300,000. Patient service revenues = $1 million; net patient service revenues = $400,000. Patient service revenues = $600,000; net patient service revenues = $300,000. Patient service revenues = $600,000, net patient service revenues = $400,000.
A private not-for-profit health care entity provides its patients with services that would normally be charged at $1 million. However, it estimates a $200,000 reduction because of contractual adjustments. It expects another $100,000 reduction because of bad debts. Finally, the organization does not expect to collect $400,000 because this amount is deemed to be charity care. Which of the following is correct? Patient service revenues = $1 million; net patient service revenues = $300,000. Patient service revenues = $1 million; net patient service revenues = $400,000. Patient service revenues = $600,000; net patient service revenues = $300,000. Patient service revenues = $600,000, net patient service revenues = $400,000.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 4RE
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A private not-for-profit health care entity provides its patients with services that would normally be charged at $1 million. However, it estimates a $200,000 reduction because of contractual adjustments. It expects another $100,000 reduction because of
- Patient service revenues = $1 million; net patient service revenues = $300,000.
- Patient service revenues = $1 million; net patient service revenues = $400,000.
- Patient service revenues = $600,000; net patient service revenues = $300,000.
- Patient service revenues = $600,000, net patient service revenues = $400,000.
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