Sheridan 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 $964000 at December 31, 2024 before year-end adjustment. Service contract costs are charged as incurred to the service contract expense account, which had a balance of $237000 at December 31, 2024. Outstanding service contracts at December 31, 2024 expire as follows: During 2025 During 2026 During 2027 $205000 $316000 $140000 What amount should be reported as unearned service contract revenues in Sheridan's December 31, 2024 balance sheet? $489000. $440000. $727000. $661000

Sheridan 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 $964000 at December 31, 2024 before year-end adjustment. Service contract costs are charged as incurred to the service contract expense account, which had a balance of $237000 at December 31, 2024. Outstanding service contracts at December 31, 2024 expire as follows: During 2025 During 2026 During 2027 $205000 $316000 $140000 What amount should be reported as unearned service contract revenues in Sheridan's December 31, 2024 balance sheet? $489000. $440000. $727000. $661000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 1MC: The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before...

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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?
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