A private not-for-profit health care entity charges patients $4 million that will be covered by various government

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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?

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Advanced Accounting

ISBN: 9781260247824

14th Edition

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik

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