Smith Technical Services Is Working on a Six-Month Job for a Client,starting

question 3

Multiple Choice

Smith Technical Services is working on a six-month job for a client,starting February 1.They will collect $48,000 from their customer when the job is finished.On March 1,their Accounts receivable account has a debit balance of $8,000.At the end of March,after monthly adjusting entries have been made,what will the balance in Accounts receivable be?

• A) Debit balance of $48,000
• B) Credit balance of $8,000
• C) Debit balance of $16,000
• D) Debit balance of $12,000

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Definitions:

Production Work

The tasks and activities involved in manufacturing products, including assembly and processing materials.

Assembly Line

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product efficiently.

Joint Costs

Costs that are incurred in the process of producing two or more products simultaneously up to the point where these products are separable.

Split-off Point

The stage in a production process where joint products can be recognized as distinct and separate products.