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Integrated Physicians & Associates, an investor-owned company, had the following account balances at the end of 2020:

Gross patient service revenue (total charges)	$858,189
Contractual discounts and allowances to third-party payers	243,488
Charges for charity (indigent) care	101,237
Estimated bad debts (implicit price concessions)	59,658

Suppose the 2020 contractual discounts and allowances balance reported above is understated by $39,220. In other words, the correct balance should be $39,220 higher than what is shown above. Assuming a 30 percent income tax rate, what would be the effect of the misstatement on Integrated Physicians & Associates 2020 reported net patient service revenue?

Indicate whether the balance is overstated, understated, or not affected by the misstatement as follows.

If overstated, indicate the amount of the overstatement as a positive number.

If understated, indicate the amount of the understatement as a negative number.

If not affected, enter 0 (zero).

Hint: Begin by calculating the net patient service revenue amount that would be shown on Integrated Physicians & Associates income statement for the year ended December 31, 2020.

Enter your answer in whole dollars. Do not enter the "$" sign. For example, enter $1,234 as 1234. If the answer is negative, place a minus sign (-) before the answer.

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