Your hospital has billed charges of $4,000,000 in February. If your collection experience indicates that 20 percent

Question:

Your hospital has billed charges of $4,000,000 in February. If your collection experience indicates that 20 percent is paid in the month billed, 40 percent in the second month, 20 percent in the third month, and 5 percent in the fourth month, determine the following values:
a) Net patient revenue for February
b) Collections of February charges in February
c) Net at the end of March for February billings

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...