Question
Composite provides extended service contracts on electronic equipment it sells through major retailers. The extended service contract covers a four year period. During January of
Composite provides extended service contracts on electronic equipment it sells through major retailers. The extended service
contract covers a four year period. During January of the current year, the company sold for cash 42,000 extended warranty
contracts at an average price of $162 each.
Assuming the companys fiscal ends Dec. 31st, the adjusting journal entry(if any) on Dec. 31st would be:
A) Debit Credit
| Cash | $ 6,804,000 |
|
| Service Contracts Revenue |
| $ 6,804,000 |
B)
| Unearned (Deferred) Service Contract Revenue | 1,701,000 |
|
| Service Contracts Revenue |
| 1,701,000 |
C)
| Accounts Receivable | 6,804,000 |
|
| Service Contracts Revenue |
| 6,804,000 |
D) None of the above
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Marketing Audit And Performance A Case Of Parastatals Marketin Audit And Performance
Authors: Bonventure Onyango Odote, Wyckliffe Otieno Robby
1st Edition
