Under Lennon Hospitals rate structure, it earned patient service revenue of $8.4 million for the...
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Accounting
Under Lennon Hospitals rate structure, it earned patient service revenue of $8.4 million for the year ended December 31, 2017. However, Lennon did not expect to collect this entire amount because it deemed $1.10 million to be charity care and estimated contractual adjustments to be $740,000.
During 2017, Lennon purchased medical supplies from Harrison Medical Supply Company at a cost of $3,400. Harrison notified Lennon that it was donating the supplies to the hospital.
Lennon is a private not-for-profit entity:
How much should Lennon record as patient service revenue? (Enter your answer in millions rounded to 2 decimal places.)
How much should Lennon record as net patient service revenue? (Enter your answer in millions rounded to 2 decimal places.)
How should Lennon record the donation of the supplies? (Enter your answer in dollars not in millions.)
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