What amount should be reported as unearned service

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Question - Marigold Corp. 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 contract revenues. This account had a balance of $957000 at December 31, 2019 before year-end adjustment. Service contract costs are charged as incurred to the service contract expense account, which had a balance of $237000 at December 31, 2019. Outstanding service contracts at December 31, 2019 expire as follows:

During 2020

During 2021

During 2022

$198000

$318000

$136000

Required - What amount should be reported as unearned service contract revenues in Marigold's December 31. 2019 balance sheet?

Reference no: EM133117431

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