For the year ended December 31, 20X3, how much should Dodge report as net patient service revenue?
Question:
For the year ended December 31, 20X3, how much should Dodge report as net patient service revenue?
a. $4,500,000
b. $5,000,000
c. $5,500,000
d. $5,740,000
Under its established rate structure, Dodge Hospital would have earned patient service revenue of $5,000,000 for the year ended December 31, 20X3. However, Dodge did not expect to collect this amount because of contractual adjustments of $500,000 to third-party payers. In May 20X3, Dodge purchased bandages from Hunt Supply Company at a cost of $1,000. However, Hunt notified Dodge that the invoice was being canceled and that the bandages were being donated. On December 31, 20X3, Dodge had board-designated assets consisting of $40,000 in cash and investments of $700,000
Step by Step Answer:
Advanced Financial Accounting
ISBN: 9781260165111
12th Edition
Authors: Theodore Christensen, David Cottrell, Cassy Budd