Denny 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 $900,000 at December 31, 2011 before year-end adjustment. Service contracts still outstanding at December 31, 2011 expire as follows:
Service contracts still outstanding at December 31, 2011 expire as follows:
During 2012 $190,000
During 2013 $285,000
During 2014 $125,000
What amount should be reported as Unearned Service Revenues in Denny's December 31, 2011 balance sheet?
a. $900,000
b. $600,000
c. $1,500,000
d. $300,000
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Denny 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
A master production schedule quantity of 300 units will arrive in week 6. weekly demand over weeks 3 through 10 is forecasted at 50 units. at present, orders have been booked in various quantities in weeks 1, 2, 3, and 4.
Answers (1)
Which business letter feature is found at the top of the page? A. Inside Address B. Reference C. Date D. Return of Address
No Answers
At year-end (December 31), Chan Company estimates its bad debts as 0.70% of its annual credit sales of $672,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $336 account of P.
Answers (1)
At the time a $450 petty cash fund is being replenished, the company's accountant finds vouchers totaling $350 and petty cash of $100. The vouchers include: postage, $90; business lunches, $135; delivery fees, $80; and office supplies, $45.
Answers (1)
Kevin has deposited money into a savings account. Choose the correct terms to complete each sentence. Kevin deposits $100 into a savings account today. This is his. In one year, Kevin's money earns 5 percent. The $5 he earns is.
Answers (1)
New Questions in Business
How will the general ledger accounts in the trial balance most likely differ if the company were a retail store rather than a wholesale company? how will they differ for a hospital or a government unit?
Answers (1)
Camilo's property, with an adjusted basis of $155,000, is condemned by the state. Camilo receives property with a fair market value of $180,000 as compensation for the property taken. a. What is Camilo's realized and recognized gain? b.
Answers (1)
A decrease in resource prices will increase the incentive of users to purchase the resource. suppliers to provide more of the resource. firms to find and develop substitutes for the resource.
Answers (1)
Garden Company purchased merchandise on account from Parker Company for $88,000 with terms 1/15, net 45. Garden Company returned $12,000 of the merchandise and received full credit from Parker Company.
Answers (1)
Money is a productive asset. Its opportunity cost is: A) The time value of money. B) Valuation. C) Inflation. D) Replacement cost. E) Depreciation.
Answers (1)