Business, 03.03.2020 19:27 salgado100400

Nine months ago, The Allstate Corporation sold a one-year policy to a customer and recorded the receipt of the premium by crediting Unearned Revenue for $2,496. No accounting adjustments have been prepared during the nine-month period. Allstate's annual financial statements are now being prepared.

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Answer from: jadalawler3

Journal entry recorded by the Company at the time of receipt:

Cash A/C Dr. $2496

To Unearned Revenue 2496

(Being unexpired insurance premium recorded)

After 9 months, the following journal entry would be passed for adjustment of insurance premium expired or the revenue which has been earned by the company.

Unearned Revenue A/C (2496 × $\frac{9}{12}$ ) Dr. $ 1872

To Revenue A/C 1872

(Being proportion of insurance premium expired recorded)

Unearned Revenue A/C denotes a liability. At the time of receipt of payment, the insurance company creates this liability since services are due against the receipts.

At the time of preparation of financial statements, the unearned revenue which has now been earned is recorded by debiting i.e reducing the liability balance.

Answer from: Quest

Pay attention in class and maybe you would know

Answer from: Quest

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1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7. customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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Nine months ago, The Allstate Corporation sold a one-year policy to a customer and recorded the rece...