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My program is just telling me the below is incomplete, but won't tell me where I went wrong. Can anyone help? St. Joseph's Hospital began
My program is just telling me the below is incomplete, but won't tell me where I went wrong. Can anyone help?
St. Joseph's Hospital began operations in December 2019 and had patient service revenues totaling $1,000,000 (based on customary rates) for the month. Of this, $120,000 is billed to patients, representing their insurance deductibles and copayments. The balance is billed to third-party payors, including insurance companies and government health care agencies. St. Joseph's estimates that 20 percent of these third-party payor charges will be deducted by contractual adjustment. The hospital's fiscal year ends on December 31. Required: 1. Prepare the journal entries for December 2019. Assume 15 percent of the amounts billed to patients will be reduced through implicit price adjustments. 2. Prepare the journal entries for 2020 assuming the following: a. $98,000 is collected from the patients during the year and $9,500 of price adjustments are granted to individuals. b. Actual contractual adjustments total $181,000. The remaining receivable from third-party payors is collected. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet Credit No 1 Transaction 1a General Journal Patient Accounts Receivable-Patients Patient Accounts Receivable3rd Party Payors RevenuesWithout Donor RestrictionsPatient Service Revenue Debit 120,000 880,000 1,000,000 2 1b 176,000 Contractual Adjustments Patient Accounts Receivable-3rd Party Payors 176,000 3 1C 18,000 Provision for Implicit Price Adjustments Allowance for Implicit Price Adjustments 18,000 4 2a 98,000 Cash Patient Accounts Receivable-Patients 98,000 5 2b1 9,500 Allowance for Implicit Price Adjustments Patient Accounts ReceivablePatients 9,500 6 2b2 Contractual Adjustments Cash Patient Accounts Receivable-3rd Party Payors 5,000 699,000 704,000
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