A private not-for-profit health care entity charges patients $4 million that will be covered by various government
Question:
A private not-for-profit health care entity charges patients $4 million that will be covered by various government programs. These programs are entitled to $1.9 million in explicit price concessions. The health care entity believes it has a 60 percent chance of receiving the net amount but a 40 percent chance of receiving $200,000 less after government adjustments. What are the two possible journal entries that the health care entity can report?
Step by Step Answer:
This type situation is common in health care because thirdparty payors often have the ri...View the full answer
Advanced Accounting
ISBN: 9781260247824
14th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
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A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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