A hospital reported the following uncollectible amounts: $15,000 for services rendered to homeless individuals with no intention of collection. $35,000 for services rendered with the expectation that the amount collected would likely be $10,000 less than the standard rate billed. What amount should be reported in revenues and provision for bad debt for these items? Multiple Choice O Net Patient Service Revenue: $25,000; Provision for Bad Debt: $25,000. Net Patient Service Revenue: $35,000; Provision for Bad Debt: $10,000. Net Patient Service Revenue: $50,000; Provision for Bad Debt: $25,000. Net Patient Service Revenue: $25,000; Provision for Bad Debt: $0.
A hospital reported the following uncollectible amounts: $15,000 for services rendered to homeless individuals with no intention of collection. $35,000 for services rendered with the expectation that the amount collected would likely be $10,000 less than the standard rate billed. What amount should be reported in revenues and provision for bad debt for these items? Multiple Choice O Net Patient Service Revenue: $25,000; Provision for Bad Debt: $25,000. Net Patient Service Revenue: $35,000; Provision for Bad Debt: $10,000. Net Patient Service Revenue: $50,000; Provision for Bad Debt: $25,000. Net Patient Service Revenue: $25,000; Provision for Bad Debt: $0.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A hospital reported the following uncollectible amounts:
$15,000 for services rendered to homeless individuals with no intention of collection.
$35,000 for services rendered with the expectation that the amount collected would likely be $10,000 less than the standard rate billed.
What amount should be reported in revenues and provision for bad debt for these items?
Multiple Choice
O
Net Patient Service Revenue: $25,000; Provision for Bad Debt: $25,000.
Net Patient Service Revenue: $35,000; Provision for Bad Debt: $10,000.
Net Patient Service Revenue: $50,000; Provision for Bad Debt: $25,000.
Net Patient Service Revenue: $25,000; Provision for Bad Debt: $0.
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