Discussion:
Jordan an auditor, is performing a routine review of a not-for-profit hospital and noted the following account balances in the statement of operations for the fiscal year ending
Sept. 30, 2011:Gross patient service revenue from all $ 4,450,000services at the hospital's established billing rate Bad debt expense $ 90,000 Contractual adjustments $ 420,000
Calculate the amount the hospital would report as net patient service revenue in its statement of operations for the fiscal year ending Sept. 30, 2011.