41) Good Faith Hospital, operated by a religious organization, billed patients $4,000,000 for services rendered during the year ended June 30, 20X9. The hospital realized cash of $3,500,000 from the patient billings because of the following reductions:

(1) contractual adjustments of $140,000 granted to private insurance companies and to the federal government; and

(2) uncollectible accounts receivable of $360,000.

On the statement of operations prepared for the year ended June 30, 20X9, Good Faith Hospital should report net patient service revenue of:

A) $3,500,000.

B) $3,860,000. please explain how to get this answer

C) $4,000,000.

D) $3,640,000.

Answer: B