A physical therapist has a standard charge of $100 for a back therapy session. A patient makes a co-payment of $20 at the time of service. His insurer sends a payment of $50. Which accounting entry for that payment is correct?
A) Accounts Receivable $80 credit
B) Accounts Receivable $50 credit
C) Medical Services Revenue $50 debit
D) Medical Services Revenue $20 debit

Question

Quizplus · Accepted Answer

The total charge for the session is $100. The patient pays $20, and the insurer pays $50, totaling $70. The remaining $30 is still owed, so the correct entry is to credit Accounts Receivable by $80 ($50 from the insurer and $30 still owed).

A Physical Therapist Has a Standard Charge of $100 for a Back