ACCY161Fa10_Notes26

ACCY161Fa10_Notes26 - ACCY 161 Fall 2010 Class Notes#26...

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ACCY 161 – Fall 2010 Class Notes #26– Accounting Colleges and Universities – Chapter 16 ACCY161Fa10_Notes26 Page 1 of 3 I. Class Notes 1. Exam #3 next Tuesday 2. Projects 3. Class evaluations – on SacCT webpage II. Healthcare Review – Accounting for Contractual Allowances A. Accounts – just get the concept, account title not too important 1. Gross patient revenue 2. Contractual discounts or allowances – contra-revenue account 3. Together they sum to net patient revenue 4. Gross patient accounts receivable 5. Allowance for contractual discounts – contra-asset account. 6. #5 is not the same as the allowance for doubtful accounts 7. Together they (# 4 less #5) sum to net patient receivables B. Accounting – no entries on the exam. This is another way of doing it known as the “broad” method. Gross Patient Revenue Contractual Discounts Cash 1,000 #1 #2 200 #3 700 Gross Patient A/R Allowance for contractual discounts PIP – Provisional Interim Payments #1 1,000 200 #2 700
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ACCY161Fa10_Notes26 - ACCY 161 Fall 2010 Class Notes#26...

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