Record the Following Transactions on the Books of St

question 5

Essay

Record the following transactions on the books of St.Marie's Hospital,a private not-for-profit hospital.
(a)The Hospital billed patients $612,000 for services rendered. Of this amount,4.5% is expected to be uncollectible. Contractual adjustments with insurance companies are expected to total $87,000.
(b)The Hospital received $500,000 in pledges of support in a campaign undertaken to purchase new MRI equipment. All of the pledges are payable within one year and 8% are expected to be uncollectible.
(c)Charity care in the amount of $36,000 (at standard charges)was performed on an indigent patient.
(d)The Hospital collected $487,200 for the services performed in (1)above. Actual contractual adjustments for these services amounted to $89,700. $ 15,900 of receivables were identified as uncollectible and written off.

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Definitions:

Collective Bargaining

The process by which employers and unions negotiate terms of employment, including wages, hours, and working conditions.

Government Regulations

Rules and directives created by government agencies to control or guide specific industries or activities.

Reciprocal Trading

A trading system where countries mutually agree to provide comparable benefits and privileges to each other, often involving tariff reductions or eliminations.

Mexican Factory

A manufacturing facility located in Mexico, often referenced in discussions about outsourcing, labor conditions, or trade policies.