Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In a particular month Golden Gate Medical Clinic, a private not-for-profit organization, reported the following: (1) It provided direct care to patients, billing them $400,000.

In a particular month Golden Gate Medical Clinic, a private not-for-profit organization, reported the following: (1) It provided direct care 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 insurance and group plans for which, at standard rates, it would have billed $650,000. However, owing to contractual agreements with the payers, it actually billed them for and expects to collect only $480,000. (3) It provided charity care for which it would have billed, at standard rates, $82,000. (4) It received capitation fees of $1,400,000 from health care plans and provided service to members of those plans for which it would have billed, at standard rates, $1,600,000. Prepare appropriate journal entries to record revenue.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Society Rituals Of Verification

Authors: Michael POWER

1st Edition

0198296037, 978-0198296034

More Books

Students also viewed these Accounting questions

Question

What type of situation (win/lose) is the goal of negotiation?

Answered: 1 week ago

Question

Acceptance of the key role of people in this process of adaptation.

Answered: 1 week ago

Question

preference for well defined job functions;

Answered: 1 week ago