Question

In ministration of assistant records a $10,000 charge for a patient surgery. the patient pays $500 towards his surgery and the insurance company is scheduled to pay $8000. the outstanding balance from the service is

A. Accrual accounting to $0
B. Cash accounting to $500
C. Cash accounting to $8000
D. Accural accounting to $1500

Answer 1

To find the outstanding balance of the service, subtract the amount paid by the patient and the amount to be paid by the insurance company from the total cost of the surgery.

Total costs for the surgery = $10,000

Amount paid by patient = $500

Amount to be paid by insurance company = $8,000

Outstanding balance = Total charge - (Amount paid by patient + Expected amount to be paid by insurance company)

Outstanding Balance = $10,000 - ($500 + $8,000)

Outstanding Balance = $10,000 - $8,500

Outstanding Balance = $1,500

The outstanding balance for the service is $1,500.