Pattie's Event Planning Service Has Just Prepared the Unadjusted Trial

question 110

Multiple Choice

Pattie's Event Planning Service has just prepared the unadjusted trial balance, which shows the following balances: Late in this month, she began working with a new client, providing event planning services for an upcoming event. When the event is complete, in the following month, she will collect the full amount of $900 from her client. As of the end of this month, she has rendered one-third of the services covered by the contract. She makes accrual adjustments monthly. The final adjusted balance of Service revenues, as shown on the adjusted trial balance, should be a:

• A)debit balance of $300.
• B)credit balance of $3,900.
• C)debit balance of $3,300.
• D)credit balance of $3,300.

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Definitions:

Derived Demand

A demand for a commodity, service, etc., that is a consequence of the demand for something else.

Elasticity of Demand

Refers to the degree to which the quantity demanded of a good or service varies with its price.

Demand Curve

A graph illustrating the relationship between the price of a good and the quantity demanded by consumers at those prices, typically downward sloping.

Business-to-Business (B₂B)

Commercial transactions or engagements between two businesses, rather than between a company and individual consumers.