1. Svoboda County Regional Medical Center’s gross charges for services rendered to patients in 20X8 were $82,000,000. Of this, $2,500,000 was for services rendered to individuals who were certified by the county as having no means to pay. Also, contractual adjustments granted on services rendered to insured patients and Medicare patients during 20X8 totaled $4,800,000 by December 31, 20X8, and it was estimated that another $350,000 of contractual adjustments would be made associated with those services. In addition, the hospital estimated that it will incur bad debt losses of approximately $3,200,000 associated with the services rendered in 20X8.
2. Svoboda County Regional Medical Center received $875,000 of donations in 20X8 to be used to cover the cost of charity services provided to patients who do not have sufficient means to pay for the needed medical care.

Required
a. Prepare the general journal entries that Svoboda County Regional Medical Center should make to record these transactions.
b. Prepare the portion(s) of the Svoboda County Regional Medical Center’s Statement of Revenues, Expenses, and Changes in Net Position affected by these transactions.