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Business, 23.03.2020 16:55 cheesecake1919

Ryan Co. sells major household appliance service contracts for cash. The service contracts are for a 1-year, 2-year, or 3-year period. Cash receipts from contracts are credited to unearned service contract revenues. This account had a balance of $720,000 at December 31, Year 1, before year-end adjustment. Service contract costs are charged as incurred to the service contract expense account, which had a balance of $180,000 at December 31, Year 1. Outstanding service contracts at December 31, Year 1, expire as follows:
During Year 2
-
$150,000
During Year 3
-
225,000
During Year 4
-
100,000
What amount should be reported as unearned service contract revenues in Ryan's December 31, Year 1, balance sheet?

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