Author Question: County General Hospital estimates uncollectible accounts to be 112,000 and contractual adjustments ... (Read 81 times)

crazycityslicker · **on:** Jul 5, 2018

County General Hospital estimates uncollectible accounts to be 112,000 and contractual adjustments to be 79,000 . The entry needed to record these estimates would be

Debit Credit

A. Expenses
Allowance for Doubtful Accounts 191,000
191,000
B. Expenses
Revenue Deductions Contractual Adjustments
Allowance for Doubtful Accounts
Allowance for Contractual Adjustments 112,000
79,000

112,000
79,000
C. Revenue Deductions Uncollectible Accounts
Expenses
Allowance for Doubtful Accounts
Allowance for Contractual Adjustments 112,000
79,000

112,000
79,000
D. Revenue Deductions Uncollectible Accounts
Revenue Deductions Contractual Adjustments
Allowance for Doubtful Accounts
Allowance for Contractual Adjustments 112,000
79,000

112,000
79,000

Question 2

The fact that each transaction has a dual effect on the accounting elements provides the basis for what is called complex-entry accounting.
a. True
b. False
Indicate whether the statement is true or false