Problem
Mercy Care normally charges $200 for an annual physical exam. Currently, the company is offering a $50 discount to expectant mothers. In addition, Mercy offers terms 2/10, n/30 to all customers receiving services on account. The following events occur.
June 16 Mary, an expectant mother, calls to set up an appointment.
June 221 Mary visits Mercy and receives a physical exam for the discounted price.
June 27 Mary pays for her physical exam.
Required
On what data, should Mercy record patient revenue?
Record service revenue for Mercy.
Mercy receives Mary's payment in full on June 27 (within the discount period).
Record the cash collection for Mercy.
Calculate the balance of accounts receivable and net revenue after the cash payment is received.