A hospital provided $750,000 of billable services to noncapitated patients. Payment has not yet been received. When the transaction is recorded on the general ledger, cash (an asset) is increased by $750,000 and patient revenue is decreased by $750,000. True False
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A hospital provided $750,000 of billable services to noncapitated patients. Payment has not yet been received. When the transaction is recorded on the general ledger, cash (an asset) is increased by $750,000 and patient revenue is decreased by $750,000.
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- Illustrate the effects on the accounts and financial statements of the following transactions in the accounts of Valley Care & Supplies Co., a local hospital supply company that uses the direct write-off method of accounting for uncollectible receivables: If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. create a balance sheet for all dates given. March 18. Received $26,500 on an account. March 18. Wrote off the remaining $83,190 owed on account as uncollectible. Aug. 29. Reinstated the account that had been written off on March 18. (Do not record the collection of cash yet.) Aug. 29. Received $83,190 cash in full payment for the reinstated account.How much cash did the Hospital collect on Accounts Receivable in 20X1? $15800 $16000 $13000 $12800Rapid Delivery Services establishes a Change Fund of $200. At the end of the day, RapidDelivery Services had $1,230 on hand. The journal entry to record the day’s receipts wouldinclude a:a) Debit to Change Fund.b) Credit to Income from Services.c) Debit to Petty Cash Fund.d) None of the answers listed.
- Nature of Uncollectible Accounts The XYZ Corporation owns and operates casinos. For a recent year, The XYZ Corporation reported accounts and notes receivable of $364,000 and allowance for doubtful accounts of $64,792. Patient Care manufactures and sells a wide range of health care products. For a recent year, Patient Care reported notes and accounts receivable of $819,000 and allowance for doubtful accounts of $41,769. Round your percentage answers to one decimal place. a. Compute the percentage of the allowance for doubtful accounts to the accounts and notes receivable for The XYZ Corporation. % b. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for Patient Care. % c. Which of the two companies would have a harder time determining the creditworthiness of its customers? XYZ Corporation Patient Careif your supervisor tells you to change the aging category of a large account from over 120 days to current status and prepare a new invoice to the customer with the revised date that agrees with this new category this will change the required allowance from for uncollectible accounts from $180, 000 to $235,000 how do you think this misstatement of funds will impact your income statement and your balance sheet?AB Co made a credit sale to DE Co for $200,000 on July 19x9. It is known that at the end of 19x9 there was an outstanding receivable of $47,000. Managementestimates that $25,000 will be uncollectible.In July 19x9 the collections department stated that a receivable of $5,000 was written off frombookkeeping because it is impossible to receive payment from DE Co. Unexpectedly monthOctober 19x9 DE Co pays its outstanding debt. Requested:Prepare the adjusting entries and the journals needed to record the above transactions properlythe backup method as well as the direct deletion method!
- The Physical Therapy Center specializes in helping patients regain motor skills after serious accidents. The center has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $110,000; Allowance for Uncollectible Accounts = $4,000 (debit). The center estimates uncollectible accounts based on an aging of accounts receivable as shown below. Age Group AmountReceivable Estimated PercentUncollectible Not yet due $ 60,000 4% 0 – 60 days past due 26,000 20% 61–120 days past due 16,000 30% More than 120 days past due 8,000 85% Total $110,000 Required: 1. Estimate the amount of uncollectible receivables. 2. Record the adjustment for uncollectible accounts on December 31, 2021. 3. Calculate net accounts receivable.Brown Co made a credit sale to Cody Co for $200,000 on July 19x9. It is known that at the end of 19x9 there was an outstanding receivable of $50,000. Managementestimates that $25,000 will be uncollectible.In July 19x9 the collections department stated that a receivable of $5,000 was written off frombookkeeping because it is impossible to receive payment from Cody Co. Unexpectedly monthOctober 19x9 Cody Co pays its outstanding debt. Requested:Prepare the adjusting entries and the journals needed to record the above transactions properlythe backup method as well as the direct deletion method!the supervisor tells you to change the aging category of a large account from over 120 days to current status and prepare a new invoice to the customer with the revised date and that agrees with the new category this will change the required allowance of uncollectible accounts from $180,000 to $135,000. What are the potential consequences if you do comply with your supervisors instructions?Who will be negatively impacted?
- During its first year of operations, Cullumber Company had credit sales of $3,701,300; $657,200 remained uncollected at year-end. The credit manager estimates that $40,500 of these receivables will become uncollectible. Prepare the journal entry to record the estimated uncollectibles. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Prepare the current assets section of the balance sheet for Cullumber Company. Assume that in addition to the receivables it has cash of $92,900, inventory of $131,400, and prepaid insurance of $8,500. (List Current Assets in order of liquidity.) CULLUMBER COMPANYBalance Sheet (Partial) Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant…During its first year of operations, Crane Company had credit sales of $3,064,300; $655,000 remained uncollected at year-end. The credit manager estimates that $36,900 of these receivables will become uncollectible. Prepare the journal entry to record the estimated uncollectibles. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit List of Accounts Prepare the current assets section of the balance sheet for Crane Company. Assume that in addition to the receivables it has cash of $94,400, inventory of $135,200, and prepaid insurance of $8,500. (List Current Assets in order of liquidity.) CRANE COMPANY Balance Sheet (Partial) 24 %24 %24SIPAG Company provided the following accounts abstracted from the unadjusted trial balance at year- end: - Accounts Receivable (debit) 5,000,000 Allowance for doubtful accounts (credit) - 40,000 - Net credit sales (credit) 20,000,000 The entity estimated that 3% of the gross accounts receivable will become uncollectible. What amount should be recognize as doubtful accounts expense for the current year?