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Problem 1: Rainbow Designers took a $1,500 deposit from a customer when they signed the contract to paint the customer's residence. It took them three weeks to complete the job. On completion the customer paid the $3,500 balance. How should Rainbow Designers recognize revenue for this job assuming the job is performed on one accounting period?
A) The $1,500 as revenue when it is received, and the $3,500 as revenue when it is received.B) The $1,500 as unearned revenue and the $3,500 as revenue when it is received.C) $5,000 as revenue at the completion of the project.D) The $1,500 as unearned revenue and $5,000 as revenue when the project is completed.
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