A not-for-profit hospital had gross patient billings of 43 million, contractual adjustments of 8 million, and charity care of 1,500,000 . The hospital also made a provision for bad debts in the amount of 1,000,000 .
How much should the hospital report as net patient service revenue?
a. 43 million
b. 35 million
c. 33.5 million
d. 32.5 million
Question 2
Alberta's Appliances is a wholesaler that sells to retail stores on credit. To provide for possible bad debts, Alberta established a 32,000 allowance for uncollectible accounts.
One of its customers goes bankrupt and Alberta decided to write off the account as uncollectible. What journal entry should Alberta make to record the bankruptcy?
a. debit bad debts expense; and credit accounts receivable
b. debit bad debts expense; and credit allowance for uncollectible accounts
c. debit sales revenues; and allowance for uncollectible accounts
d. debit allowance for uncollectible accounts; and credit accounts receivable
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