A private not-for-profit health care entity has the following account balances:
Revenue from newsstand . . . $ 50,000
Amounts charged to patients . 800,000
Interest income . . . . . . . . . . . .. .30,000
Salary expense—nurses . . . . 100,000
Provision for bad debts . . . . . 10,000
Undesignated gifts . . . . . . . . . 80,000
Contractual adjustments . . . . 110,000
What is reported as the organization’s net patient service revenue? Choose the correct.
a. $880,000
b. $800,000
c. $690,000
d. $680,000