A physician provides the same service to two patients with a charge of $80. One patient pays cash. The other patient has insurance coverage. Which is correct for a double entry system?
A) Two debit postings of $80 in the Cash account
B) Two credit postings of $80 in the Medical Services account
C) Two debit postings of $80 in the Medical Services account
D) One credit posting of $80 in the Cash account

Question

Quizplus · Accepted Answer

In a double entry system, providing a service would result in a credit to the Medical Services account, reflecting the increase in revenue. Since the service was provided to two patients, there would be two credit postings of $80 each to account for the revenue generated from both services.

A Physician Provides the Same Service to Two Patients with a Charge