Unearned service contract revenues


Service contract costs are charged as incurred to the service contract expense account, which had a balance of $120,000 at December 31, 2009. Outstanding service contracts at December 31, 2009 expire as follows: During 2010 During 2011 During 2012 $100,000 $160,000 $70,000 What amount should be reported as unearned service contract revenues in Felton"s December 31, 2009 balance sheet?

A. $360,000.

B. $330,000.

C. $240,000.

D. $220,000.

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Accounting Basics: Unearned service contract revenues
Reference No:- TGS092452

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