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

question 147

Multiple Choice

Techno Technical Services is working on a six-month job for a client,starting on February 1.It will collect $30,000 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 $6,000.After the March 31 monthly adjusting entry has been made,what will be the balance in Accounts Receivable?

• A)Debit balance of $5,000
• B)Credit balance of $25,000
• C)Debit balance of $11,000
• D)Debit balance of $30,000

---

Definitions:

Permissible

Allowed or permitted within a set of rules, laws, or regulations.

Exculpatory Clause

A contract provision that relieves one party of liability if damages are caused during the execution of the contract.

Liability

A legal responsibility or obligation that may arise from any number of legal claims or is imposed by law.

Unconscionability

A contract or term within a contract that is so unjust or overwhelmingly one-sided in favor of the party who has the superior bargaining power.