Eaton Co. sells major household appliance service contracts for cash. The service contracts are for a oneyear, two-year, or three-year period. Cash receipts from contracts are credited to Unearned Service. Revenue. This account had a balance of $5,700,000 at December 31,2017 before year-end adjustment. Service contract costs are charged as incurred to the Service Contract Expense account, which had a balance of $1,350,000 at December 31, 2017. Service contracts still outstanding at December 31, 2017 expire as follows: What amount should be reported as Unearned Service Revenue in Eaton's. December 31, 2017 balance sheet