1. For each of these transactions, note the accounting entry that would be made
ID: 2484456 • Letter: 1
Question
1. For each of these transactions, note the accounting entry that would be made (Debit and Credit) and at what amount. a. The organization look out a long-term loan for $2,000,000. Debit: Credit: ``` b. The organization provided services (net of third-party allowances and charity care) of $2,500,000 for the month. Nothing has been collected on these amounts. Debit: Credit: c. The inventory of medical supplies and pharmaceuticals was counted and it was determined that drug supplies with a cost of $5,000 had expired and were then discarded. Debit: Credit:
Explanation / Answer
a
Cash A/c Dr. $ 2000000
To Long term Loan A/c Cr. $ 2000000
b
Patient Account Receivable A/c DR. $2500000
To Patient Service revenue A/c Cr. $2500000
c
Loss on Inventory Discarded A/c DR. $5000
To Inventory A/c Cr. $5000
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