St. Joseph's Hospital began operations In December 2019 and had patlent service revenues totaling $1,230,000 (based on customary rates) for the month. Of this, $138,000 Is billed to patlents, representing their Insurance deductibles and copayments. The balance is billed to third-party payors, Including Insurance companles and government health care agencles. St. Joseph's estimates that 20 percent of these third-party payor charges will be deducted by contractual adjustment The hospital's fiscal year ends on December 31. Required: 1. Prepare the Journal entries for December 2019. Assume 15 percent of the amounts billed to patlents will be reduced through Implicit price adjustments. 2 Prepare the Journal entries for 2020 assuming the following: a. $118,000 Is collected from the patients during the year and $1,300 of price adjustments are granted to Individuals. b. Actual contractual adjustments total $306.000. The remalning recelvable from third-party payors Is collected. (If no entry Is required for a transaction/event, select "No Journal Entry Requlred" in the first account field.) Vlew transaction lst Journal entry worksheet 3 4 Record the provision for uncollectible accounts for 2019. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry Vlew general journal
St. Joseph's Hospital began operations In December 2019 and had patlent service revenues totaling $1,230,000 (based on customary rates) for the month. Of this, $138,000 Is billed to patlents, representing their Insurance deductibles and copayments. The balance is billed to third-party payors, Including Insurance companles and government health care agencles. St. Joseph's estimates that 20 percent of these third-party payor charges will be deducted by contractual adjustment The hospital's fiscal year ends on December 31. Required: 1. Prepare the Journal entries for December 2019. Assume 15 percent of the amounts billed to patlents will be reduced through Implicit price adjustments. 2 Prepare the Journal entries for 2020 assuming the following: a. $118,000 Is collected from the patients during the year and $1,300 of price adjustments are granted to Individuals. b. Actual contractual adjustments total $306.000. The remalning recelvable from third-party payors Is collected. (If no entry Is required for a transaction/event, select "No Journal Entry Requlred" in the first account field.) Vlew transaction lst Journal entry worksheet 3 4 Record the provision for uncollectible accounts for 2019. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry Vlew general journal
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
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning