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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