Healthcare
Contractual Adjustment (Insurance Discount)
Adjusting the receivable to reflect the lower amount the insurance company is legally required to pay.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Contractual Adjustments | Contra-Revenue (+) | 3,000.00 | - |
| Patient Accounts Receivable | Asset (-) | - | 3,000.00 |
💡 Accountant's Note
This is the most critical healthcare entry. It reduces revenue from 'Gross' to 'Net Realizable Value.' It represents the difference between the hospital's price and the insurance company's allowed rate.
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