CH5

Q3

On October 1. your calendar year company signs a $20,000 contract to have its offices painted and makes a down-payment of $14,000 that you recorded in Painting Expense. If, on December 31, management informs you that 25% of the work has been completed, what adjusting entry will you record? Select one: a. a credit to Painting Expense for $9,000 b. a debit to Painting Expense for $9,000 c. a credit to Painting Expense for $5,000 d. a debit to Painting Expense for $5,000 Check