For the year ended December 31, 20X3, Dodge should record the donation of bandages as a(n)

a. $1,000 reduction in operating expenses.

b. Decrease in net assets released from restrictions.

c. Increase in unrestricted revenue, gains, and other support.

d. Memorandum entry only.

Under its established rate structure, Dodge Hospital would have earned patient service revenue of $5,000,000 for the year ended December 31, 20X3. However, Dodge did not expect to collect this amount because of contractual adjustments of $500,000 to third-party payers. In May 20X3, Dodge purchased bandages from Hunt Supply Company at a cost of $1,000. However, Hunt notified Dodge that the invoice was being canceled and that the bandages were being donated. On December 31, 20X3, Dodge had board-designated assets consisting of $40,000 in cash and investments of $700,000