Under Lennon Hospital's rate structure, it earned patient service revenue of $9 million for the year ended December 31, 2017. However, Lennon did not expect to collect this entire amount because it deemed $1.4 million to be charity care and estimated contractual adjustments to be $800,000. During 2017, Lennon purchased medical supplies from Harrison Medical Supply Company at a cost of $4,000. 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 1 decimal place.) b. How much should Lennon record as net patient service revenue? (Enter your answer in millions rounded to 1 decimal place.) c. How should Lennon record the donation of the supplies? (Enter your answer in dollars not in millions.) a. Patient service revenue million b. Net patient service revenue million

Under Lennon Hospital's rate structure, it earned patient service revenue of $9 million for the year ended December 31, 2017. However, Lennon did not expect to collect this entire amount because it deemed $1.4 million to be charity care and estimated contractual adjustments to be $800,000. During 2017, Lennon purchased medical supplies from Harrison Medical Supply Company at a cost of $4,000. 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 1 decimal place.) b. How much should Lennon record as net patient service revenue? (Enter your answer in millions rounded to 1 decimal place.) c. How should Lennon record the donation of the supplies? (Enter your answer in dollars not in millions.) a. Patient service revenue million b. Net patient service revenue million

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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