Bahrain Company provides extended service contracts on electronic equipment sold through major retailers. The standard contract...
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Bahrain Company provides extended service contracts on electronic equipment sold through major retailers. The standard contract is for three years. During the current year, the company sold 21,000 such warranty contracts at an average price of $81 each. Related to these contracts. What is the balance of unearned warranty revenue at end of the third year? A. $451,000. B. $1,134,000. C. $0. D. $567,000. Bahrain Company provides extended service contracts on electronic equipment sold through major retailers. The standard contract is for three years. During the current year, the company sold 21,000 such warranty contracts at an average price of $81 each. Related to these contracts. What is the balance of unearned warranty revenue at end of the third year? A. $451,000. B. $1,134,000. C. $0. D. $567,000.
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The answer is Option D Revenue for each year is Total Revenue divid... View the full answer
Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-1305103962
6th edition
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Posted Date:
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