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A company sells 3-year service contracts for air conditioning units for P1,500 each. Sales of service contracts and repairs are made evenly throughout each year.
A company sells 3-year service contracts for air conditioning units for P1,500 each. Sales of service contracts and repairs are made evenly throughout each year. The company estimates that 15% of repairs are done in the first year from the date of sale, 35% in the second year and 50% in the third year. Service contracts sold in 2021, 2022 and 2023 were 1,400, 1,820 and 1,650, respectively. How much is the unearned revenue from service contracts as of December 31, 2024?
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