In the Month of November, Coler Company Inc

question 11

Multiple Choice

In the month of November, Coler Company Inc.wrote checks in the amount of $18,500.In December, checks in the amount of $25,316 were written.In November, $16,936 of these checks were presented to the bank for payment, and $21,766 were presented in December.What is the amount of outstanding checks at the end of December?

• A)$3,550
• B)$1,564
• C)$5,114
• D)$7,100

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Definitions:

Allowance For Doubtful Accounts

An accounting estimate for the amount of receivables that may not be collectible, reducing the reported value of accounts receivable to reflect potential losses.

Accounts Receivable

Debts due to a business from its clients for products or services that have been provided or consumed but remain unpaid.

Accrual Basis

A method of accounting that records revenues and expenses when they are earned or incurred, regardless of when cash is received or paid.

Cash Basis

An accounting method where revenues and expenses are recorded only when cash is received or paid, regardless of when the transactions occurred.