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.