On the first day of a month, a company received an advance cash payment of $25,000 for remodeling work to be completed over the next six months. During the first month the company completed 25% of the work.

The company correctly recorded the receipt of cash in the Unearned Revenue account when it was received, and also correctly recorded the adjusting entry at the end of the first month.

The balance in the Unearned Revenue account at the end of the first month would be:

Group of answer choices

a)$20,000.

b)$18,750.

c)$5,000.

d)$25,000.