Question

Assuming annual tuition and fees are $35,700 per student, prepare the journal entry for a student who withdrawals from all coursework before the withdrawal deadline.

St. Jerome's is a non-governmental not-for-profit hospital . For December 31 of the current year, St. Jerome's reported the following accounts:

• Gross patient service revenue from all services provided at the established billing rates of the hospital, including $25,000 charity care $775,000
• Contractual adjustments $70,000
• Provision for bad debts $15,000

What amount would the hospital report as net patient service revenue in its statement of operations for the current year ended December 31?

Answer 1

(a)

Debit Credit

Tution and Fees Revenue Account..........................Debit $35700

To Cash/ Accounts Receivable Account $35700

( Being student withdraw from course)

Note

Please note that if the student paid the full amount then cash is to be credited for that amount otherwise the accounts receivable will be credited.

(2)

Statement Showing the Net Patient Service Revenue

Description	Amount
Gross Patient Service Revenue	775000
Less: Contractual Adjustment	70000
Net Patient Service Revenue	705000

Note

(1) Chairty care of $25000 is also a revenue. So, this is also to be included in the net patient service revenue.

(2) Provision for bad debt of $15000 is to be adjusted with the accounts receivable. It has no impact on the net patient service revenue.