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Business, 23.07.2019 01:30 natenate32

Eaton 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 revenue. this account had a balance of $3,800,000 at december 31, 2014 before year-end adjustment. service contract costs are charged as incurred to the service contract expense account, which had a balance of $900,000 at december 31, 2014. service contracts still outstanding at december 31, 2014 expire as follows: during 2015 $960,000 during 2016 1,140,000 during 2017 700,000 what amount should be reported as unearned service revenue in eaton's december 31, 2014 balance sheet?

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