Coronado Industries sells major household appliance service contracts for cash. The service contracts are for a one ycar, two-year, or three-year period. Cash receipts from contracts are credited to unearned service contract revenues. This account had a balance of $965000 at December 31, 2019 before year-end adjustment. Service contract costs are charged as incurred to the service contract expense account, which had a balance of $243000 at December 31, 2019. Outstanding service contracts at December 31, 2019 expire as follows: During 2020 During 2021 During 2022 $198000 $318000 $142000 What amount should be reported as unearned service contract revenues in Coronado's December 31, 2019 balance sheet? $460000. O $658000. O $722000. O $516000.

Coronado Industries sells major household appliance service contracts for cash. The service contracts are for a one ycar, two-year, or three-year period. Cash receipts from contracts are credited to unearned service contract revenues. This account had a balance of $965000 at December 31, 2019 before year-end adjustment. Service contract costs are charged as incurred to the service contract expense account, which had a balance of $243000 at December 31, 2019. Outstanding service contracts at December 31, 2019 expire as follows: During 2020 During 2021 During 2022 $198000 $318000 $142000 What amount should be reported as unearned service contract revenues in Coronado's December 31, 2019 balance sheet? $460000. O $658000. O $722000. O $516000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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