Record in General Journal Form the Following Selected Transactions for Avalon

question 10

Essay

Record in general journal form the following selected transactions for Avalon General Hospital,a nongovernmental not-for-profit institution.
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.

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Definitions:

Penetration Pricing

A marketing strategy where a company introduces a product at a low price to gain market share, then gradually increases the price.

Market Share

The portion of a market controlled by a particular company, product, or brand, typically expressed as a percentage of total sales in the industry.