Find on december balance sheet bbc would report liabilities

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BBC Company received $9,900 cash on February 1, 2019, from XYZ Company as advance payment for services BBC promised to perform for XYZ over the next three years on a continuous basis. Assume that BBC Company's year-end is December 31.

Problem 1: On its December 31, 2020 balance sheet BBC would report liabilities of

Option 1: $3,300.

Option 2: $3,575.

Option 3: $9,900.

Option 4: $6,875.

Reference no: EM132660983

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