Use the Following Information to Answer Bellow Questions:
a Hospital

Use the following information to answer bellow Questions:
A hospital reports the following information:
$$\begin{array} { | l | r | } \hline \text { Estimated bad debts-non-charity patients } & \$ 500,000 \\\hline \text { Contractual adjustments-third party payors } & 1,000,000 \\\hline \text { Direct gross billings to non-charity patients } & 5,000,000 \\\hline \text { Gross billings to insurance companies and M edicare/Medicaid } & 17,000,000 \\\hline \text { Charity care, estimated billing value } & 2,000,000 \\\hline \text { Charity care, cott } & 1,200,000 \\\hline\end{array}$$
-Charity care is reported on the hospital's statement of activities as:

A) Expense of $1,200,000
B) Revenue of $2,000,000 and bad debt expense of $800,000
C) Revenue of $2,000,000 and expense of $1,200,000
D) Revenue of $1,200,000 and expense of $1,200,000