Toddler Care Co. offers three payment plans on its twelve-month contracts. Information on the three plans and the number of children enrolled in each plan for the September 1, 2006 through August 31, 2007 contract year follows:

align=”left”>

Plan

Initial payment per child

Monthly fees per child

Number of children

#1

$500

$ —

15

#2

200

30

12

#3

50

9

36

Toddler received $9,900 of initial payments on September 1, 2006, and $3,240 of monthly fees during the period September 1 through December 31, 2006. In its December 31, 2006 balance sheet, what amount should Toddler report as deferred revenues?

  1. $3,300
  2. $4,380
  3. $6,600
  4. $9,900