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 biled 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 No Transaction Debit Credit 1 1a General Journal Patient Accounts Receivable-Patients Patient Accounts Receivable3rd Party Payors Revenues-Without Donor Restrictions-Patient Service Revenue 120.000 880.000 1,000,000 2 1b 170,000 Contractual Adjustments Patient Accounts Receivable-3rd Party Payors 176,000 3 10 18.000 Provision for Implicit Price Adjustments Allowance for Implicit Price Adjustments 18,000 4 2a 98.000 98,000 Cash Patient Accounts Receivable-Patients Allowance for Contractual Adjustments Patient Accounts Receivable-Patients 9.500 9.500 5 2b1 5,000 Contractual Adjustments Patient Accounts Receivable-3rd Party Payors 5,000 8 2b2 699.000 Cash Patient Accounts Receivable-3rd Party Payors 699,000