When a bad debt is written off and subsequently collected in full:

1)	A gain is recognized.

2)	The net realizable value of accounts receivable increases.

3)	The bad debt expense for the period of collection is reduced.

4)	The allowance for doubtful accounts is reduced.

5)	There is no effect to the income statement.

DF Investment Ltd. purchased a large area of land with the intention to transform it into a pineapple plantation. Before the new seedlings can be planted, the site, which is prone to flooding, must be drained. The cost of the draining should be

1)	expensed only after the first crop of pineapple has been harvested.

2)	capitalized as part of the cost of the land.

3)	expensed immediately.

4)	reported as loss from discontinued operations.

Source of income for a not-for-profit organization is:

1)	Subscription from Members

2)

Donation

3)	Entrance Fees

4)	All the above