Devin co sells household appliance service contracts for


Question - Devin Co. sells household appliance service contracts for cash. The service contracts are one-year, two-year or three-year periods. Cash receipts from contracts are credited to unearned service revenues. This account had a balance of $2,000,000 at December 31, 2018, before the year-end adjustment.

What amount should be reported as Unearned Service Revenues in Devin's December 31, 2018, balance sheet?

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Accounting Basics: Devin co sells household appliance service contracts for
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