On April 1,Year 1,Guyton Sails Accepted a $12,000 Advance Payment

On April 1,Year 1,Guyton Sails accepted a $12,000 advance payment for maintaining a customer's fleet of sailboats.The contract is for 12 months.In May Year 1,the company performed $1,200 worth of repairs.What is the remaining liability that will appear on the company's balance sheet at the end of May?

A) $1,200
B) $10,000
C) $10,800
D) $12,000