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1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

2. Transaction Analysis

Journal Entries: Debits and Credits

Financial Accounting

2. Transaction Analysis

Journal Entries: Debits and Credits

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Multiple Choice

When processing a credit balance, if a refund is due to a patient, you must:

Debit the patient accounts receivable and credit cash to issue the refund.

Debit the revenue account and credit cash to issue the refund.

Debit cash and credit the revenue account to issue the refund.

Credit the patient accounts receivable and debit cash to issue the refund.

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Verified step by step guidance

Understand the concept of a credit balance: A credit balance in a patient account typically means the patient has overpaid or there is an excess payment that needs to be refunded.

Identify the accounts involved: The refund process will involve the patient accounts receivable (to adjust the balance) and cash (to issue the refund).

Determine the correct journal entry: To issue a refund, you need to reduce the patient accounts receivable balance (credit) and record the cash payment (debit).

Analyze the options provided: Match the correct journal entry to the options given in the problem. The correct entry should debit cash and credit the patient accounts receivable.

Ensure proper understanding: Review why the other options are incorrect, such as debiting revenue or crediting cash, which do not align with the refund process for a credit balance.