On January 1, 20X2, Dot Company sold a three-year, service-type extended warranty to Matrix Company for $36,000. The warranty took effect on the date of purchase (January 1, 20X2). What amount of Unearned Warranty Revenue should be reported on Dot's December 31, 20X3, Balance Sheet? $36,000 $24,000 $12,000 $6,000
On January 1, 20X2, Dot Company sold a three-year, service-type extended warranty to Matrix Company for $36,000. The warranty took effect on the date of purchase (January 1, 20X2). What amount of Unearned Warranty Revenue should be reported on Dot's December 31, 20X3, Balance Sheet? $36,000 $24,000 $12,000 $6,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![On January 1, 20X2, Dot Company sold a three-year, service-type
extended warranty to Matrix Company for $36,000. The warranty
took effect on the date of purchase (January 1, 20X2). What amount
of Unearned Warranty Revenue should be reported on Dot's
December 31, 20X3, Balance Sheet?
$36,000
$24,000
$12,000
$6,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fff349ac4-4c35-49ff-ac6d-eecdb001eef0%2F2bcd39c4-3f7d-4fee-b58a-fde3c5fd8694%2Fll5qkb3_processed.png&w=3840&q=75)
Transcribed Image Text:On January 1, 20X2, Dot Company sold a three-year, service-type
extended warranty to Matrix Company for $36,000. The warranty
took effect on the date of purchase (January 1, 20X2). What amount
of Unearned Warranty Revenue should be reported on Dot's
December 31, 20X3, Balance Sheet?
$36,000
$24,000
$12,000
$6,000
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