Income Statement

Year Ended December $31,2016$

Patient service revenue$*$ $$625,000$

Less provision for bad debts $50,000$

Net patient service revenue $$575,000$

$*$On the income statement, patient service revenue is shown net of contractual discounts and allowances and charges for charity care, as these amounts are not expected to be collected $($i$.$e$.,$ they are not realizable$).$

Patient service revenue $=($$$975,000-$$$250,000-$$$100,000).$

The actual amounts of contractual discounts and allowances and charges for charity care may be reported in the footnotes, or not at all.

The provision for bad debts is shown as a revenue deduction on the face of the income statement.