Faith Hospital has over 1,000 beds and performs major surgeries. Faith Hospital billed an insurance provider for a major medical procedure for $30,000.

49. The entry for the billing to the insurance provider would include a:

A. Debit to Contractual Adjustment, $30,000.

B. Debit to Provision for Uncollectible Accounts, $30,000.

C. Credit to Patient Revenue, $30,000.

D. Credit to Contractual Adjustment, $30,000.

50. The insurance provider paid only $24,000, which was the final settlement. The journal entry to record the entry for the contractual adjustment would include a:

A. Debit to Cash, $24,000.

B. Credit to Contractual Adjustment, $6,000.

C. Debit to Contractual Adjustment, $24,000.

D. Credit to Accounts Receivable, $6,000.