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Question - Johnson Company sells contracts agreeing to service equipment for a three-year period. Information for the year ended December 31, 2022 is as follows:
Cash receipts from service contracts sold: P1,920,000
Service contract revenue recognized: 1,560,000
Unearned service contract revenue, January 1: 1,080,000
In its December 31, 2022 statement of financial position, what amount should Johnson report as unearned service contract revenue?
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