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

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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
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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