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

question 6

Multiple Choice

Techno Technical Services is working on a six-month job for a client,starting on February 1.It will collect $24,000 from its customer when the job is finished but the revenue is earned evenly over the six months.On March 31,before adjusting entries are made,Techno's Accounts Receivable account had a debit balance of $3,000.After the March 31 monthly adjusting entry has been made,what will be the balance in Accounts Receivable?

• A)Debit balance of $4,000
• B)Credit balance of $20,000
• C)Debit balance of $7,000
• D)Debit balance of $24,000

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Definitions:

United States

A country in North America consisting of 50 states and a federal district, known for its significant influence on world economics, politics, and culture.

Oil

A viscous liquid derived from petroleum, crude oil, or plants, used as fuel, in manufacturing, and as a base for many chemicals.

Consumption

The use of goods and services by households or individuals, often measured to understand economic activity and trends.