The Following Information Was Taken from the Unadjusted Trial Balance

question 63

Multiple Choice

The following information was taken from the unadjusted trial balance and aging schedule of Diane Company on December 31, 2010. All sales are on account. Accounts and related balances at December 31, 2010 before adjustment:
Aging Schedule of Accounts Receivable:
If Diane uses the aging schedule of accounts receivable to determine bad debts, what is the Allowance for Doubtful Accounts balance at December 31, 2010?

• A) $3,000
• B) $4,280
• C) $2,920
• D) $3,740

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Definitions:

Beers

An alcoholic beverage typically made from water, malted barley, hops, and yeast.

Day

A period of 24 hours as a unit of time, representing the time taken by the Earth to complete one rotation with respect to the sun.

Utility

Refers to the total satisfaction received from consuming a good or service.

Consuming

The act of using goods and services to satisfy needs or wants.