Smith Technical Services Is Working on a Six- Month Job

Multiple Choice

Smith Technical Services is working on a six- month job for a client, starting 1 February. They will collect $48 000 from their customer when the job is finished. On 1 March, their Accounts receivable account has a debit balance of $8 000. At the end of March, after monthly adjusting entries have been made, what will the balance in Accounts receivable be?

A) Credit balance of $8 000
B) Debit balance of $12 000
C) Debit balance of $16 000
D) Debit balance of $48 000