For the year ended December 31, 20X5, how much should Abbey report as patient service revenue in its Statement of Revenues, Expenses, and Changes in Net Assets?

a. \(\$ 6,000,000\)

b. \(\$ 5,500,000\)

c. \(\$ 5,000,000\)

d. \(\$ 4,500,000\)

Under Abbey Hospital's established rate structure, the hospital would have earned patient service revenue of \(\$ 6\) million for the year ended December 31, 20X5. However, Abbey did not expect to collect this amount because of charity allowances of \(\$ 1\) million and discounts of \(\$ 500,000\) to third-party payers. In May 20X5, Abbey purchased bandages from Lee Supply Co. at a cost of \(\$ 1,000\). However, Lee notified Abbey that the invoice was being canceled and that the bandages were being donated to Abbey.