Which entry would be the correct entry to record that a hospital has provided patient services for $200,000,of which 25% will be billed to a third party?

Question

Quizplus · Accepted Answer

The correct entry should include debiting Accounts Receivable-Patients for the total amount of $200,000 and dividing the amount between Accounts Receivable-Patients and Accounts Receivable-Third Party (25% of $200,000 = $50,000). The credit should be to Patient Service Revenue for the total amount of $200,000. Therefore, option B is the correct entry, where Accounts Receivable-Patients is debited for $150,000, Accounts Receivable-Third Party is debited for $50,000, and Patient Service Revenue is credited for $200,000.

Which Entry Would Be the Correct Entry to Record That