Question

In a particular month Northwest Medical Clinic reported the following:
1. It provided direct care services to patients, billing them $400,000. Of this amount it received $120,000 in cash, but as a consequence of bad debts it expects to collect a total of only $330,000.
2. It provided direct care to patients covered by insurance and who are members of various group health plans for which, at standard rates, it would have billed $650,000. However, owing to contractual arrangements with the payers it actually billed them for, and expects to collect, only $480,000.
3. It provided charity care for which it would have billed, at standard rates, $82,000.
4. It received capitation fees of $1,400,000 from health care plans and provided services to members of those plans for which it would have billed, at standard rates, $1,600,000.
Prepare appropriate journal entries to recognize revenue.



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  • CreatedAugust 13, 2014
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