Eaton 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 Revenues. This account had a balance of $1,800,000 at December 31, 2010 before year-end adjustment. Service contract costs are charged as incurred to the Service Contract Expense account, which had a balance of $450,000 at December 31, 2010. Service contracts still outstanding at December 31, 2010 expire as follows:During 2011 $380,000During 2012 570,000During 2013 350,000What amount should be reported as Unearned Service Revenues in Eaton's December 31, 2010 balance sheet? a. $1,350,000. b. $1,300,000. c. $850,000. d. $500,000.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Eaton Co. sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or three-year ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Why do consumers sometimes take a while to respond to price changes? a. price changes do not affect consumers. b. consumers cannot find acceptable substitutes immediately. c. consumers need time to decide whether the good is a luxury or a necessity.
Answers (1)
Rapidly growing companies often buy increasing amounts of merchandise from suppliers on credit, and then sell the goods to their customers on credit.
Answers (1)
During the month, Gates Labs Co. has a substantial number of transactions affecting each of the following accounts.
Answers (1)
The goal of CPFR is to A. ensure product innovation. B. determine which model needs to be used to predict future events. C. create significantly more accurate information that can power the supply chain. D. create good relations with suppliers.
Answers (1)
Harrison Enterprises currently produces 8,000 units of part B13. Current unit costs for part B13 are as follows: Direct materials $12 Direct labor 9 Factory rent 7 Administrative costs 10 General factory overhead (allocated) 7 Total $45 If Harrison
Answers (1)
New Questions in Business
A (n) is the issuer's written promise to pay an amount equaling the par value. The par value is paid at a specified future date. Most often, the issuer is required to make semiannual interest payments.
Answers (1)
The primary goal of the Consumer Financial Protection Bureau is: A To monitor your credit report and ensure your identity and other sensitive data has not been compromised. B To protect against abusive or deceptive debt collection purposes.
Answers (1)
Jake Skinner purchases a big screen TV on credit and will repay the loan with one payment at the end of 90 days. What type of credit did Jake use?
Answers (1)
Which most likely results from producers engaging in specialization? Producers reduce their costs. Producers increase their market share. Producers decrease the materials needed for production. Producers always offer more competitive pricing.
Answers (1)
The workers at State Hospital, a public sector employer, and Acme Inc, a private employer, are subject to speech censorship and arbitrary job termination. Constitutional issues are present only for the State Hospital workers. TrueFalse
Answers (1)