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This week, the attending physicians for a large urban primary care facility have set the goal for the implementation of the new technology system to coincide with the opening of the cardiology wing. The unit is scheduled to admit patients in six months; however, a needs assessment must first be completed. Which of the following statements accurately defines the purpose of the needs assessment?
Bad Debts Expense
The cost associated with the portion of accounts receivable that is estimated to be uncollectible during a fiscal period.
Uncollectible Account
A receivable that is considered uncollectible from a debtor, usually displayed as an expense.
Allowance for Doubtful Accounts
A contra-account reducing accounts receivable to reflect the amount expected not to be collected due to customers' defaulting.
Gross Amount
The total amount before any deductions, such as taxes, expenses, or discounts, are subtracted.
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