This paper circulates around the core theme of . Smith 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 credite d to unearned service contract revenues. This account had a balance together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Smith 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 credite
d to unearned service contract revenues. This account had a balance of $480,000 at December 31, 2013 before year-end adjustment. Service contract costs are charged as incurred to the service contract expense account, which had a balance of $120,000 at December 31, 2013. Outstanding service contracts at December 31, 2013 expire as follows:
During 2014 During 2015 During 2016
$100,000 $160,000 $70,000
What amount should be reported as unearned service contract revenues in Smith’s December 31, 2013 balance sheet?
