36. During the year ended December 31, 2015, Anderson Hospital (operated as a private not-for-profit entity) received and incurred the following: How should this hospital report each of these items? Solution Explanation: Donate Medicines Donate Services (replacing salaried workers) Donate Services (not replacing salaried workers) = Not Recorded Interest Income = Revenue is an increase in unrestricted net assets Charges to patients = Increase in unrestricted net assets shown as net patient service revenues. Charity Care Bad debts = Amount is anticipated and recorded as an expense that decrease unrestricted net assets and reduce carrying amount of the receivables .

1. 36. During the year ended December 31, 2015, Anderson Hospital (operated as a private not-for-
profit entity) received and incurred the following: How should this hospital report each of these
items?
Solution
Explanation:
Donate Medicines
Donate Services (replacing salaried workers)
Donate Services (not replacing salaried workers) = Not Recorded
Interest Income = Revenue is an increase in unrestricted net assets
Charges to patients = Increase in unrestricted net assets shown as net patient service revenues.
Charity Care
Bad debts = Amount is anticipated and recorded as an expense that decrease unrestricted net
assets and reduce carrying amount of the receivables