EX$.14-3$

The basis for recognizing patient care revenue is not always obvious In a particular month, Northwest Medical Clinic reported the following:

It provided direct care services to patients, billing them $$400,000.$ Of this amount it received $$120,000$ in cash, but as a consequence of bad debts, it expects to collect a total of only $$330,000.$

It provided charity care for which it would have billed, at standard rates, $$82,000.$

It received capitation fees of $$1,400,000$ from health$-$care plans and provided services to members of those plans for which it would have billed, at standard rates, $$1,600,000.$

Prepare appropriate journal entries to recognize revenue.

Trish Himple owns a retail family clothing store. Her store is located at $4321$ Heather Drive, Henderson, NV $89002.$ Her employer identification number is $95-1234321$ and her Social Security number is $123-45-6789.$ Trish keeps her books on the cash basis. The income and expenses for the year are:

$\backslash$table$[[$Gross sales,,$$350,000$