The Following Information Was Taken from the Unadjusted Trial Balance

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:
$\begin{array}{l|r|r}\text { Age } & \text { Amount } & \% \text { Uncollectible } \\\hline 0 \text {-30 days } & \$ 14,000 & 5 \% \\30-60 \text { days } & 20,000 & 8 \% \\\text { Over } 60 \text { days } & 12,000 & 12 \%\end{array}$
If Diane uses the aging schedule of accounts receivable to determine bad debts, what is the Allowance for Doubtful Accounts balance at December 31, 2017?

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