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

question 163

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 $6,000.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 $10,000
• D) Debit balance of $24,000

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