A hospital reported the following uncollectible amounts:
$20,000 for services rendered to homeless individuals with no intention of collection.
$30,000 for services rendered with the expectation of collection,but proved to be uncollectible.
What amount should be reported in revenues and bad debt expense for these items?

Question

Quizplus · Accepted Answer

The $30,000 was initially expected to be collected, so it should be included in revenues and then written off as bad debt expense. The $20,000 was never expected to be collected, so it is not included in revenues or bad debt expense.

A Hospital Reported the Following Uncollectible Amounts