Accounting for contractual adjustments

A hospital arranges with a third-party payer to charge the third party 75 percent of its established billing rates. During January, the hospital provided services amounting to $1.0 million at the established billing rates. Prepare journal entries to record the January billings. If no adjustment is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields.

Accounting for contractual adjustments A hospital arranges with a third-party payer to charge the third party 75 percent of its established billing rates. During January, the hospital provided services amounting to $1.0 million at the established billing rates. Prepare journal entries to record the January billings. If no adjustment is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields