St. Joseph's Hospital began operations in December 2014 and had patient service revenues totaling $950,000 (based on customary rates) for the month. Of this, $103,000 is billed to patients, representing their insurance deductibles and copayments. The balance is billed to third-party payers, including insurance companies and government health care agencies. St. Joseph estimates that 20 percent of these third-party payer charges will be deducted by contractual adjustment. The Hospital's fiscal year ends on December 31.

Required:

Prepare the journal entries for December 2014. Assume that 15 percent of the amounts billed to patients will be uncollectible.

Prepare the journal entries for 2015 assuming the following:

$82,000 is collected from the patients and $9,000 is written off.

Actual contractual adjustments total $171,000. The remaining receivable from third-party payers is collected.