Belk Co. sells extended service contracts on automobiles for cash. The service contracts are for a one-year, two-year, or three-year period. Cash receipts from customers are credited to Unearned Service Contract Revenue and this account had a balance of $450,000 at Dec. 31, 20A1 before year-end adjustment. Service contract costs are charged as incurred to the Service Contract Expense account, which had a balance of $100,000 at Dec. 31, 20A1. Outstanding service contracts at Dec. 31, 20A1 expire as follows: During 20A2: $90,000 During 20A3: $160,000 During 20A4: $70,000 What amount should be reported as Unearned Service Contract Revenue in Belk's Dec. 31, 20A1 balance sheet? Group of answer choices $ 0 $220,000 $320,000 $130,000

Belk Co. sells extended service contracts on automobiles for cash. The service contracts are for a one-year, two-year, or three-year period. Cash receipts from customers are credited to Unearned Service Contract Revenue and this account had a balance of $450,000 at Dec. 31, 20A1 before year-end adjustment. Service contract costs are charged as incurred to the Service Contract Expense account, which had a balance of $100,000 at Dec. 31, 20A1. Outstanding service contracts at Dec. 31, 20A1 expire as follows: During 20A2: $90,000 During 20A3: $160,000 During 20A4: $70,000 What amount should be reported as Unearned Service Contract Revenue in Belk's Dec. 31, 20A1 balance sheet? Group of answer choices $ 0 $220,000 $320,000 $130,000

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 63P

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