Paramount Event Planning Services Collects Fees from Its Customers in Advance.On

question 55

Multiple Choice

Paramount Event Planning Services collects fees from its customers in advance.On January 1,2017,the balance of its Unearned Revenue account was $6,000 (CR) .During January and February,the company collected $3,000 and $800 as advance fees.During the two-month period,it performed services of $7,500 related to the deferred revenue.What is the balance in Unearned Revenue at the end of February?

• A)debit balance of $6,000
• B)credit balance of $6,000
• C)debit balance of $2,300
• D)credit balance of $2,300

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Definitions:

Tech Support Department

A specialized unit within a company that provides technical assistance and support related to computer systems, software, and hardware to customers or employees.

Cost Per Minute

A metric used to calculate the expense incurred for every minute of operation, often in manufacturing or services.

Customer Cost Analysis

The process of analyzing and evaluating the costs associated with acquiring and retaining customers, often used to inform pricing and marketing strategies.

Time-Driven Activity-Based Costing

A costing method that assigns costs to products or services based on the actual amount of time they consume, using an hourly cost rate.