The Following Transactions for March Have Been Journalized and Posted

question 21

Multiple Choice

The following transactions for March have been journalized and posted to the proper accounts.

What is the ending balance in the Service Revenue account?

• A)$16,000
• B)$10,000
• C)$14,000
• D)$6,000

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Definitions:

Installment Method

A method of reporting income from a sale over several years, recognizing revenue as payments are received.

Securities Market

A financial market where securities such as stocks, bonds, and options are bought and sold, crucial for raising capital and allocating resources in the economy.

Gross Profit Percentage

A financial metric that represents the gross profit as a percentage of net sales, providing insight into the efficiency of a company's production and sales operations.

Selling Expenses

Costs associated with the selling of a property or product, including advertising, commissions, and legal fees, which may influence net profit or loss.