Record in General Journal Form the Following Selected Transactions for Avalon

question 36

Essay

Record in general journal form the following selected transactions for Avalon General Hospital, a nongovernmental not-for-profit institution. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
1. Gross charges for patient services rendered during the period amounted to $7,870,000, of which $350,000 represented charity care for indigent patients.
2. During the year the provision for bad debts was set at $190,000 and contractual adjustments amounted to $435,000. 
3. A wealthy donor donated $2,000,000 to construct a new cardiology wing on the hospital.
4. During the year, the new cardiology wing (see item 3) was one-half completed at a cost of $1,000,000.

Identify different pricing tactics aimed at optimizing sales and understand the rationale behind each.

Study the effects of seasonality on pricing decisions and strategies.

Acknowledge the importance and methods of maintaining competitive pricing in the market.

Understand the ethical and legal considerations in pricing strategies.