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A hospital reported the following uncollectible amounts: $15,000 for services rendered to homeless individuals with no intention of collection. $35,000 for services rendered with the

A hospital reported the following uncollectible amounts: $15,000 for services rendered to homeless individuals with no intention of collection.

$35,000 for services rendered with the expectation that the amount collected would likely be $10,000 less than the standard rate billed.

What amount should be reported in revenues and provision for bad debt for these items?

A)Net Patient Service Revenue: $50,000; Provision for Bad Debt: $25,000.

B)Net Patient Service Revenue: $35,000; Provision for Bad Debt: $10,000.

C)Net Patient Service Revenue: $25,000; Provision for Bad Debt: $25,000.

D)Net Patient Service Revenue: $25,000; Provision for Bad Debt: $0.

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