Record the following transactions on the books of the private not-for-profit Mansoor Hospital. The Hospital billed patients AED880,000 for services rendered. Of this amount, 5% is expected to be uncollectible. Contractual adjustments with insurance companies are expected to total AED125,000. The Hospital received AED640,000 in pledges of support in a campaign undertaken to purchase new MRI equipment. All of the pledges are payable within one year and 6% are expected to be uncollectible. Charity care in the amount of AED38,000 was performed on an indigent patient. The Hospital collected AED684,000 for the services performed in (a) above. Actual contractual adjustments for these services amounted to AED135,000. AED32,000 of receivables were identified as uncollectible and written off.
Record the following transactions on the books of the private not-for-profit Mansoor Hospital. The Hospital billed patients AED880,000 for services rendered. Of this amount, 5% is expected to be uncollectible. Contractual adjustments with insurance companies are expected to total AED125,000. The Hospital received AED640,000 in pledges of support in a campaign undertaken to purchase new MRI equipment. All of the pledges are payable within one year and 6% are expected to be uncollectible. Charity care in the amount of AED38,000 was performed on an indigent patient. The Hospital collected AED684,000 for the services performed in (a) above. Actual contractual adjustments for these services amounted to AED135,000. AED32,000 of receivables were identified as uncollectible and written off.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Record the following transactions on the books of the private not-for-profit Mansoor Hospital.
- The Hospital billed patients AED880,000 for services rendered. Of this amount, 5% is expected to be uncollectible. Contractual adjustments with insurance companies are expected to total AED125,000.
- The Hospital received AED640,000 in pledges of support in a campaign undertaken to purchase new MRI equipment. All of the pledges are payable within one year and 6% are expected to be uncollectible.
- Charity care in the amount of AED38,000 was performed on an indigent patient.
- The Hospital collected AED684,000 for the services performed in (a) above. Actual contractual adjustments for these services amounted to AED135,000. AED32,000 of receivables were identified as uncollectible and written off.
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