St. Simon's Hospital, a non-profit entity had the following data for December 2020:

Total services provided at hospital billing rates

Covered by insurance carriers with contracts with hospital

3,000,000

Covered by insurance carriers without contracts

1,000,000

Private pay not covered by insurance

500,000

Charitable care not subject to any billing

1,000,000

Total services at billing value

5,500,000

All amounts are payable after november

Contracted insurance carriers pay at average of 60% of hospital billing rate but usually have no collection risk other than contractual discount

Insurance carriers without contracts pay at average of 80% of hospital billing rates but has no collection risk other than negotiated discount

Private patients pay at 100% rates (no discount) but generally do not pay 40% due to lack of payment rather than discounts

7

How much revenue should St Simons report for the month of December

_________________________________________________

8

Ultimately, in 2021 after issuance of December financial statements, insurance carriers without contracts actually wound up paying 70% of hospital billing rates instead

of 80% due to more difficult negotiations on rates. This $100K shortfall from expected collections should be recorded as what income statement account and in what year:

_________________________________________________

9

Ultimately, in 2021 after issuance of December financial statements, insurance carriers with contracts actually wound up agreeing to pay 60% of hospital billing rates.

However, one carrier , Green Cross Insurers, who had agreed to pay at 60% unexpectedly went bankrupt in March 2021 and was unable to pay the $50,000 they owed.

This $50K shortfall from expected collections should be recorded as what income statement account and in what year: