Hannah, an auditor, is performing a routine review of a not-for-profit hospital and noted the following account balances in the statement of operations for the fiscal year ending September 30, 20X0:

Calculate the amount the hospital would report as net patient service revenue in its statement of operations for the fiscal year ending September 30, 20X0.
a. $2,040,000
b. $2,070,000
C. $2,115,000
d. $1,970,000

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Gross patient service revenue from all services at the hospital's established billing rate Bad debts Contractual adjustments $2,225,000 $ 45,000 $ 210,000