Question: A not-for-profit medical center performs services in the current year at a charge of $1 million. Officials expect bad debts to be $94,000. Another $200,000

A not-for-profit medical center performs services in the current year at a charge of $1 million. Officials expect bad debts to be $94,000. Another $200,000 is viewed as charity services because no collection was expected at the time of the work. What should the medical center report as net patient service revenues?

a. $706,000.

b. $800,000.

c. $906,000.

d. $1,000,000.

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