A Physician Provides the Same Service to Two Patients with a Charge

question 24

Multiple Choice

A physician provides the same service to two patients with a charge of $80. One patient pays cash. The other patient has insurance coverage. Which is correct for a double entry system?

• A) Two debit postings of $80 in the Cash account
• B) Two credit postings of $80 in the Medical Services account
• C) Two debit postings of $80 in the Medical Services account
• D) One credit posting of $80 in the Cash account

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Definitions:

Accounts Receivable

The money owed to a business or practice for services provided or goods sold on credit but not yet paid for by clients or customers.

Charge Slip

A document or form used to record the services rendered and the charges incurred for a patient in a medical or dental practice.

Debit Balance

Occurs when the amount paid is less than the total due.

Credit Balance

The amount of money in a financial account that is available for withdrawal or use, exceeding what is owed.