Under Lennon Hospitals rate structure, it earned patient service revenue of $10.3 million for the year ended December 31, 2015. However, Lennon did not expect to collect this entire amount because it deemed $2.05 million to be charity care and estimated contractual adjustments to be $930,000.

During 2015. Lennon purchased medical supplies from Harrison Medical Supply Company at a cost of $5,300. Harrison notified Lennon that it was donating the supplies to the hospital.

Lennon is a private not-for-profit entity:

a.

How much should Lennon record as patient service revenue? (Enter your answer in millions rounded to 2 decimal place.)

Patient service revenue

million

b.

How much should Lennon record as net patient service revenue? (Enter your answer in millions rounded to 2 decimal place.)

Net patient service revenue

million

c.

How should Lennon record the donation of the supplies? (Enter your answer in dollars not in millions.)

Donation of the supplies