The Following Events Pertain to Bills Company: Using Accrual-Basis Accounting,on

question 123

Multiple Choice

The following events pertain to Bills Company: Using accrual-basis accounting,on which date should Bills Company record revenue for the accounting and tax services?
$\begin{array}{|l|l|}\hline \text { December } 28,2018 & \begin{array}{l}\text { Bills was contacted by a customer for possible accounting and } \\\text { tax services. }\end{array} \\\hline \text { December } 30,2018 & \begin{array}{l}\text { Bills signed a formal agreement with the customer to provide } \\\text { accounting and tax senvices in } 2019 .\end{array} \\\hline \text { January } 4,2019 & \begin{array}{l}\text { The customer paid } \$ 1,000 \text { in advance tor the services to be } \\\text { provided by Bills Company. }\end{array} \\\hline \text { January } 11,2019 & \text { Bills provided accounting and tax services to the customer. } \\\hline\end{array}$

• A)December 30,2018.
• B)December 31,2018.
• C)January 4,2019.
• D)January 11,2019.

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