In accounting for health care entities, the account Provision for Bad Debts should be reported as a contra-revenue, rather than as an expense.

Name: In accounting for health care entities, the account Provision for Bad Debts should be reported as a contra-revenue, rather than as an expense.
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The Provision for Bad Debts is used to reduce the reported revenue to reflect the amount of revenue that may not be collected. Therefore, it is reported as a contra-revenue account, not as an expense.

In Accounting for Health Care Entities, the Account Provision for Bad