Mercy for America, a private not-for-profit health care facility located in Durham, North Carolina, charged a patient $8,600 for services. It actually billed this amount to the patient’s third-party payor. The third-party payor submitted a check for $7,900 with a note stating that “the reasonable amount is paid in full per contract.” Which of the following statements is true? The patient is responsible for paying the remaining $700. The health care facility will rebill the third-party payor for the remaining $700. The health care facility recorded the $700 as a contractual adjustment that it will not collect. The third-party payor retained the $700 and will convey it to the health care facility at the start of the next fiscal period.

Mercy for America, a private not-for-profit health care facility located in Durham, North Carolina, charged a patient $8,600 for services. It actually billed this amount to the patient’s third-party payor. The third-party payor submitted a check for $7,900 with a note stating that “the reasonable amount is paid in full per contract.” Which of the following statements is true? The patient is responsible for paying the remaining $700. The health care facility will rebill the third-party payor for the remaining $700. The health care facility recorded the $700 as a contractual adjustment that it will not collect. The third-party payor retained the $700 and will convey it to the health care facility at the start of the next fiscal period.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 4RE

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Mercy for America, a private not-for-profit health care facility located in Durham, North Carolina, charged a patient $8,600 for services. It actually billed this amount to the patient’s third-party payor. The third-party payor submitted a check for $7,900 with a note stating that “the reasonable amount is paid in full per contract.” Which of the following statements is true? Choose the correct.a. The patient is responsible for paying the remaining $700.b. The health care facility will rebill the third-party payor for the remaining $700.c. The health care facility recorded the $700 as a contractual adjustment that it will not collect.d. The third-party payor retained the $700 and will convey it to the health care facility at the start of the next fiscal period.
Each of the following situations involves a possible violation of the AICPA Code of Professional Conduct. For each situation, state the applicable rule of conduct and whether it is a violation. t of Said has a successful dentistry practice in Wasagee. Said has recommended one of his patients to Suha, CPA. To show gratitude for the referral, Suha has agreed to pay Said a token gift of $100, Suha discloses the payment arrangement to her new clients. guestion Choose. Accounting firm of Rami, CPAS, is negotiating a fee with a new audit client. They agree the client will pay $8.000 as stated fees, and $2000 if the result of the audit is a clean Choose teport Next page
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Ronald started his new job as controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contains information on the company's health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross/Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program fits his needs. The following is an overview of that information. a. The monthly premium cost to Ronald for the Blue Cross/Blue Shield plan will be $45.32. For all doctor office visits, prescriptions, and major medical charges, Ronald will be responsible for 20 percent and the insurance company will cover 80 percent of covered charges. The annual deductible is $350. b. The HMO is provided to employees free of charge. The copayment for doctors' office visits and major medical charges is $15. Prescription copayments are $9. The HMO pays 100 percent after Ronald's copayment. There is no…
Mrs. Garcia came to the Obstetrics Department of Monroe Health System pregnant and ready to deliver her first baby. She has health insurance coverage with United Healthcare provided by her employer. United has a contract with Monroe Health System, that gives United Healthcare a 20% discount from Monroe's full established rates. If Monroe Health System's rate for normal newborn delivery, including mother and baby, is $5,700, what is the amount of the contractual allowance that must be recorded related to the delivery of Mrs. Garcia's baby? A. $1,140.00 B.$1,410.00 C. $3,850.00 D.$4,560.00 E.$6,840.00
Ronald started his new job as a controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contained information on the company’s health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross or Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program best fits his needs. The following is an overview of that information. The monthly premium cost for Ronald for the Blue Cross or Blue Shield plan will be $44.82. For all doctor office visits, prescriptions, and major medical charges, Ronald will be responsible for 30 percent and the insurance company will cover 70 percent of the covered charges. The annual deductible is $450. The HMO is provided to employees free of charge. The copayment for doctors' office visits and major medical charges is $10. Prescription copayments are $7. The HMO pays 100 percent after Ronald's copayment.…
a local social worker earning 14 per hour working for the state government contributed 550 hours of time at no charge to the Sunrise homeless shelter, a voluntary health and welfare entity. if not for these donated services. an additional staff person would have been hired by the entity. how should the Sunrise Homeless Shelter record the contributed services?
Ronald started his new job as controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contains information on the company's health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross/Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program fits his needs. The following is an overview of that information. a. The monthly premium cost to Ronald for the Blue Cross/Blue Shield plan will be $43.27. For all doctor office visits, prescriptions, and major medical charges, Ronald will be responsible for 20 percent and the insurance company will cover 80 percent of covered charges. The annual deductible is $500. b. The HMO is provided to employees free of charge. The copayment for doctors' office visits and major medical charges is $10. Prescription copayments are $5. The HMO pays 100 percent after Ronald's copayment. There is no…
Ronald started his new job as a controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contained information on the company’s health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross or Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program best fits his needs. The following is an overview of that information. The monthly premium cost for Ronald for the Blue Cross or Blue Shield plan will be $47.34. For all doctor's office visits, prescriptions, and major medical charges, Ronald will be responsible for 20 percent and the insurance company will cover 80 percent of the covered charges. The annual deductible is $500. The HMO is provided to employees free of charge. The copayment for doctors’ office visits and major medical charges is $15. Prescription copayments are $15. The HMO pays 100 percent after Ronald’s…
Ronald started his new job as a controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contained information on the company’s health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross or Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program best fits his needs. The following is an overview of that information. The monthly premium cost for Ronald for the Blue Cross or Blue Shield plan will be $48.32. For all doctor's office visits, prescriptions, and major medical charges, Ronald will be responsible for 20 percent and the insurance company will cover 80 percent of the covered charges. The annual deductible is $500. The HMO is provided to employees free of charge. The copayment for doctors’ office visits and major medical charges is $25. Prescription copayments are $30. The HMO pays 100 percent after Ronald’s…