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

Option B records the provision of patient services for $200,000 as a debit to Accounts Receivable and a credit to Patient Services Revenue. It also records the 25% of the amount that will be billed to a third party as a debit to Accounts Receivable-Third Party and a credit to Third Party Revenue. This entry correctly identifies the accounts involved and records the transaction accurately.

Which Entry Would Be the Correct Entry to Record That