Hospital Bad Debts Equidad, a medical management company based in State College, Pennsylvania, owned, oper- ated, and

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Hospital Bad Debts Equidad, a medical management company based in State College, Pennsylvania, owned, oper- ated, and managed 35 radiation oncology centers. Notes to a recent earnings statement reported the following about net revenue ($ in thousands): Gross revenues Less provision for contractual adjustments Net revenues $159,944 60,829 $ 99,115 1. Prepare a reasonable footnote to accompany the preceding presentation. What do you think is the purpose of contractual adjustments? 2. Prepare the summary journal entries for the $159,944 and the $60,829.

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