微信扫一扫
实时资讯全掌握
Wright Company sells for cash major household appliance service contracts agreeing to service customers’ appliances for a 1-year, 2-year, or 3-year period. Cash receipts from contracts are credited to unearned service contract revenues and this account had a balance of $1,440,000 at December 31, year 1, before year-end adjustment. Service contract costs are charged to service contract expense as incurred and this account had a balance of $360,000 at December 31, year 1. Outstanding service contracts at December 31, year 1, expire as follows:
What amount should Wright report as unearned service contract revenues at December 31, year 1? A. $1,080,000 B. $ 490,000 C. $ 950,000 D. $ 712,500 |