A hospital reported the following uncollectible amounts:
$ 10,000 for services rendered to homeless individuals with no intention of collection.
$ 30,000 for services rendered with the expectation of collection, but which proved to be uncollectible.
What amount should be reported in revenues and provision for bad debt for these items?

Question

Quizplus · Accepted Answer

Patient service revenue does not include charity care. Expenses related to charity care are deducted on the Statement of Operations. Revenue of $30,000 should be recorded for services rendered with the expectation of collection and the provision for bad debt recorded for the amount that is uncollectible.

A Hospital Reported the Following Uncollectible Amounts