Dr Ray Performs a Limited Examination of a Patient with XYZ

Multiple Choice

Dr. Ray performs a limited examination of a patient with XYZ healthcare insurance. Dr. Ray knows that XYZ will pay $65 for that service. Why does the accounting entry in the Medical Services account list the standard fee of $90?

A) To show a $25 loss for tax purposes
B) The accounting program will not allow different fees
C) To enable calculations of discounted fees
D) To enable Dr. Ray to bill the patient for the unpaid amount of $25