Yurman 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 contract revenues. This account had a balance of $960,000 at December 31, 2016 before year-end adjustment. Service contract costs are charged as incurred to the service contract expense account, which had a balance of $240,000 at December 31, 2016. Outstanding service contracts at December 31, 2016 expire as follows: During 2017 During 2018 During 2019 $200,000 $320,000 $140,000 What amount should be reported as unearned service contract revenues in Yurman's December 31, 2016 balance sheet

$660,000

Explanation:

Relevant data provided

During 2017 = $200,000

During 2018 = $320,000

During 2019 = $140,000

As per the given question the solution of Amount to be reported as unearned service contract revenues is provided below:-

Amount to be reported = During 2017 + During 2018 + During 2019

= $200,000 + $320,000 + $140,000

= $660,000

To reach  amount to be reported as unearned service contract revenues we simply put the values into formula.

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