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?
Get 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 there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Is it fair to open a shop in competition with your current employer? Why or why not?
Answers (1)
An increase in the minimum wage: a. increases both the quantity demanded and the quantity supplied of labor. b. decreases both the quantity demanded and the quantity supplied of labor. c.
Answers (1)
A software company is working on a new project for a mutual fund organization. The client expects the scope of the project to be flexible; their goals are evolving and they needed to test the product as and when components are finished.
Answers (1)
Mechanisms that enforce discipline over! nancial reporting quality least likely include:A) counterparties to private contracts. B) accounting standard-setting bodies. C) government securities regulators.
Answers (1)
During normal economic times, when there is not "excessive" unemployment or inflation, discretionary fiscal policy A. is not used due to legal restrictions on the ability of Congress to make policy. B.
Answers (1)
New Questions in Business
The strategic approach to OB applies to A. the public sector B. the not-for-profit sector C. technical businesses D. education organizations E. All of the above are correct
Answers (1)
When there are many producers and many consumers in an economy, the best way to achieve an efficient allocation of resources is to have a A. single planner who makes all production decisions and allocates all goods and services to consumers. B.
Answers (1)
Consider the market in which clothing producers operate. Suppose productivity decreases in the factory producing jeans. Explain how this event will change the quantity of jeans supplied and the supply of jeans today. A.
Answers (1)
Jones Manufacturing sent Blue Company an invoice for equipment with a list price of $10,000. The invoice is dated July 27 with terms of 2/10, EOM. Blue Company is entitled to a 40% trade discount.
Answers (1)
Suppose a plaintiff hires a lawyer to represent her in a court case. The lawyer will receive a share of the settlement if the plaintiff wins. Under this contract A. the risk is shared. B. the lawyer bears all of the risk. C.
Answers (1)