EX. 14-3 The basis for recognizing patient care revenue is not always obvious. In a particular month, Northwest Medical Clinic reported the following: 1. It provided direct care services to patients, billing them $400,000. Of this amount it received $120,000 in cash, but as a consequence of bad debts, it expects to collect a total of only $330,000. 2. It provided direct care to patients covered by insur- ance and who are members of various group health plans for which, at standard rates, it would have billed $650,000. However, owing to contractual