Maurice Tutor

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Category > Accounting Posted 01 Apr 2018 My Price 5.00

Devin Co

Devin Co. sells household appliance service contracts for cash. The service contracts are one-year, two-year or three-year periods. Cash receipts from contracts are credited to unearned service revenues. This account had a balance of $2,000,000 at December 31, 2018, before the year-end adjustment.

What amount should be reported as Unearned Service Revenues in Devin's December 31, 2018, balance sheet?

 

Service contracts still outstanding as of Dec 31, 2018 expire as follows:

During 2019 $500,000

During 2019 $1,200,000

During 2019 $ 200,000

Answers

Maurice Tutor
(5)
Status NEW Posted 01 Apr 2018 06:04 PM My Price 5.00

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