Lowery Co. sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or three-year period. Cash receipts from contracts are credited to unearned service contract revenues. This account had a balance of P600,000 at 31 December 2019 before year-end adjustment. Service contract costs are charged as incurred to the service contract expense account, which had a balance of P150,000 at 31 December 2019. Outstanding service contracts at 31 December 2019 expire as follows: During 2020 During 2021 During 2022 P125,000 P200,000 P90,000 What amount should be reported as unearned service contract revenues in Lowery's 31 December 2019 statement of financial position?
Lowery Co. sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or three-year period. Cash receipts from contracts are credited to unearned service contract revenues. This account had a balance of P600,000 at 31 December 2019 before year-end adjustment. Service contract costs are charged as incurred to the service contract expense account, which had a balance of P150,000 at 31 December 2019. Outstanding service contracts at 31 December 2019 expire as follows:
During 2020 During 2021 During 2022 P125,000 P200,000 P90,000
What amount should be reported as unearned service contract revenues in Lowery's 31 December 2019
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