Bayside Technical Services Signed a Contract on a Six-Month Job

question 33

Multiple Choice

Bayside Technical Services signed a contract on a six-month job for a client, starting on March 1. Bayside 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, Bayside's Accounts Receivable account had a debit balance of $4,000. 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 $8,000
• D) Debit balance of $24,000

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Definitions:

Acknowledgement-Of-Service

A legal document indicating that a party has received the legal papers being served.

Confirmation-Of-Service

A verification process or document that proves a service, such as mailing legal documents or completing a transaction, has been provided or delivered.

Articulate

The ability to express oneself clearly and effectively in spoken or written form.

Inexperienced Witness

A witness who lacks familiarity, knowledge, or experience in the matter to which they are attesting.