Bayside Technical Services signed a contract on a sixminusmonth job for a client, starting on March 1. Bayside will collect $24,000 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, Bayside's Accounts Receivable account had a debit balance of $4,000. After the March 31 monthly adjusting entry has been made, what will be the balance in Accounts Receivable?

$8,000

Explanation:

The computation of the balance in the account receivable is shown below:

= One month balance + debit balance of the account receivable

where,

One month balance is

= Total collection made by the customer ÷ number of months

= $24,000 ÷ 6 months

= $4,000

And, the debit balance of the account receivable is $4,000

So, the balance in account receivable is

= $4,000 + $4,000

= $8,000

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.