The Following Information Was Taken from the Unadjusted Trial Balance

question 55

Multiple Choice

The following information was taken from the unadjusted trial balance and aging schedule of Diane Company on December 31, 2017. All sales are on account.
Accounts and related balances at December 31, 2017 before adjustment:
$\begin{array}{lrr}& \text { Debit } & \text { Credit } \\\text { Accounts receivable } & \$ 46,000 & \\\text { Allowance for doubtful accounts } & & \$680\\\text { Sales (all on account) } & & 500,000 \\\text { Sales returns } & 3.000 &\end{array}$

Aging Schedule of Accounts Receivable:
$$\begin{array} { | l | c | c | } \hline \text { Age } & \text { Amount } & \% \text { Uncollectible } \\\hline \text { 0-30 days } & \$ 14,000 & 5 \% \\\text { 30-60 days } & 20,000 & 8 \% \\\text { Over 60 days } & 12,000 & 12 \%\end{array}$$
If Diane uses the aging schedule of accounts receivable to determine bad debts, what is the bad debt expense for the year ending December 31, 2017?

• A)$4,280
• B)$3,600
• C)$3,680
• D)$3,060

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Definitions:

Task Significance

The degree to which a job has a substantial impact on the lives of other people, whether within or outside the organization.

Skill Variety

The extent to which a job requires a variety of different activities in carrying out the work, involving the use of multiple skills and talents of the employee.

Skill Variety

The degree to which a job requires a range of different activities and skills to complete its tasks.

Varied Expertise

The possession of knowledge and skills across a broad range of areas or disciplines, contributing to versatility and adaptability in professional contexts.