Learning Objective : Analyze the impact of business transactions on accounts.
This question concerns the items and the amounts that two entities, Burlington Co. and Gardner Hospital, should report in their financial statements. During November, Gardner provided Burlington with medical exams for Burlington employees and sent a bill for $44,000
. On December 7, Burlington sent a check to Gardner for $30,000. Burlington began November with a cash balance of $53,000; Gardner began with cash of $0.