Jordan Co. requires advance payments for its products. The records of Jordan show the following: Unearned revenue, January 1, 2018 500,000 Cash received from advances during 2018 2,500,000 Advances applied to orders shipped in 2018 1,800,000 Advances applicable to orders cancelled in 2018 200,000 Required: Compute for the amount to be reported as unearned revenue assuming the advance payments received are non-refundable.
Jordan Co. requires advance payments for its products. The records of Jordan show the following: Unearned revenue, January 1, 2018 500,000 Cash received from advances during 2018 2,500,000 Advances applied to orders shipped in 2018 1,800,000 Advances applicable to orders cancelled in 2018 200,000 Required: Compute for the amount to be reported as unearned revenue assuming the advance payments received are non-refundable.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Jordan Co. requires advance payments for its products. The records of Jordan show the following:
Unearned revenue, January 1, 2018 500,000
Cash received from advances during 2018 2,500,000
Advances applied to orders shipped in 2018 1,800,000
Advances applicable to orders cancelled in 2018 200,000
Required: Compute for the amount to be reported as unearned revenue assuming the advance payments received are non-refundable.
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