Your hospital has billed charges of 4000000 in February If y

Your hospital has billed charges of $4,000,000 in February. If your collection experience indicates that 20 percent is paid in the month billed, 40 percent in the second month, 20 percent in the third month, and 5 percent in the fourth month, determine the following values:

c) Net accounts receivable at the end of March for February billings

Solution

(c) Net accounts receivable at the end of March for February billings Since 20% was collected in February and 40% was collected in March, that leaves 40%. 4,000,000 x 40% = $1,600,000

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