Events That Occur After the December 31, 2015 Balance Sheet

Multiple Choice

Events that occur after the December 31, 2015 balance sheet date (but before the balance sheet is issued) and provide additional evidence about conditions that existed at the balance sheet date and affect the realizability of accounts receivable should be

A) discussed only in the MD&A (Management's Discussion and Analysis) section of the annual report.
B) disclosed only in the Notes to the Financial Statements.
C) used to record an adjustment to Bad Debt Expense for the year ending December 31, 2015
D) used to record an adjustment directly to the Retained Earnings account