The following costs were incurred to acquire and prepare land for a new parking lot: purchase price of land, $900,000; cost to clear the land, $40,000; cost of paving, $40,000; and cost of lighting for the parking lot, $30,000. How much should be recorded in the land improvements account? O $35,000 $55,000 $20,000 $70,000 Which of the following is a characteristic of a company that uses the allowance method of accounting for bad debts? It reports accounts receivable in the statement of financial position at their net realizable value. It does not use a contra-asset account called Allowance for Doubtful Accounts. It records bad debt expense each time an account is determined to be uncollectible. It increases its accounts receivable balance when the account is written off