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19. Pennsylvania General Hospital is a not-for-profit entity. The hospital provided charity care to indigent patients for which it would have normally billed insurance companies,
19. Pennsylvania General Hospital is a not-for-profit entity. The hospital provided charity care to indigent patients for which it would have normally billed insurance companies, at standard 3rd party rates, $200,000, Indigent patients don't have health insurance coverage, and would normally be billed directly, at standard direct patient rates, $170,000. What journal entry(ies) should the hospital record? a) Debit Charity Care Receivable $200,000; Credit Charity Care Revenue $200,000 b) Debit Charity Care Receivable $200,000; Credit Charity Care Revenue $200,000 AND Debit Bad Debt Expense $200,000; Credit Allowance for Doubtful Accounts $200,000 Oc) Debit Charity Care Receivable $170,000; Credit Charity Care Revenue $170,000 d) Debit Charity Care Receivable $170,000; Credit Charity Care Revenue $170,000 AND Debit Bad Debt Expense $170.000; Credit Allowance for Doubtful Accounts $170,000 e) No journal entry is required
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