A doctor for the Benson Family Practice performs a sports physical exam for AllisonSmythe on February 1. The charge for the exam is $100; Smythe’s insurance company,Cardinal Health, is billed for the entire $100 on February 1. Cardinal Health receivesthe invoice on February 2, and enters the amount into its payment system on February 4.Benson Family Practice receives the $100 payment from Cardinal Health on February 20.On which date would Benson Family Practice recognize the revenue for Smythe’s physical?a. February 1b. February 2c. February 4d. February 20
A doctor for the Benson Family Practice performs a sports physical exam for AllisonSmythe on February 1. The charge for the exam is $100; Smythe’s insurance company,Cardinal Health, is billed for the entire $100 on February 1. Cardinal Health receivesthe invoice on February 2, and enters the amount into its payment system on February 4.Benson Family Practice receives the $100 payment from Cardinal Health on February 20.On which date would Benson Family Practice recognize the revenue for Smythe’s physical?a. February 1b. February 2c. February 4d. February 20
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A doctor for the Benson Family Practice performs a sports physical exam for Allison
Smythe on February 1. The charge for the exam is $100; Smythe’s insurance company,
Cardinal Health, is billed for the entire $100 on February 1. Cardinal Health receives
the invoice on February 2, and enters the amount into its payment system on February 4.
Benson Family Practice receives the $100 payment from Cardinal Health on February 20.
On which date would Benson Family Practice recognize the revenue for Smythe’s physical?
a. February 1
b. February 2
c. February 4
d. February 20
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