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A hospital originally recorded all patient services it provided as a $500,000 debit to accounts receivable. Upon review the hospital determined that a contractual adjustment of $200,000 needs to be made, and estimated bad debts of $5,000 need to be recorded. In addition, at the time the receivable was recorded the hospital did not realize $100,000 should be considered charity services. Based on the information provided, what is the net amount of accounts receivable that the hospital would report on its financial statements?

User N Fard
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1 Answer

6 votes

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$205000
Subtracting 200,000 for contractual adjustments, subtract another 100,000 for charity
Add 5,000 for bad debts
User DrinkBird
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