A Hospital Originally Recorded All Patient Services It Provided as a $500,000

question 39

Multiple Choice

A hospital originally recorded all patient services it provided as a $500,000 debit to accounts receivable. Upon review the hospital determined that a contractual adjustment of $200,000 needs to be made, and estimated bad debts of $5,000 need to be recorded. In addition, at the time the receivable was recorded the hospital did not realize $100,000 should be considered charity services. Based on the information provided, what is the net amount of accounts receivable that the hospital would report on its financial statements?

• A) $495,000.
• B) $300,000.
• C) $200,000.
• D) $195,000.

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Definitions:

Authoritarian

A governing or leadership style characterized by absolute or blind obedience to authority, often at the expense of personal freedom.

Right Decisions

Choices or judgments that lead to the most positive outcome based on ethical, practical, or personal considerations.

Informal Child Care

Child care that is provided by relatives, friends, or neighbors, not through formal settings such as daycare centers or professional caregivers.

Home Child Care

Child care provided in the child’s own home, primarily by a grandmother or other family member, while the parents are at work.