Based on Saint Michael Hospital's established billing rate structure, the hospital would have earned patient service revenue of $8,500,000 for the year. However, Saint Michael does not expect to collect this amount because of charity care provided in the amount of $1,000,000 and contractual allowances to third-party payers of $750,000. How much should Saint Michael record as patient service revenue for the year?

$8,500,000

$7,750,000

$7,500,000

$6,750,000