On November 1, 20X1, Superior Insurance Inc. received $18,000 from one of its customers for an insurance policy that expires October 31, 20X2. Question: How should this $18,000 be reflected in Superiors December 31, 20X1 accrual-based financial statements?

Select one:

a. Insurance Revenue Deferred (Unearned) Insurance Revenue $3,000 $15,000

b. Insurance Revenue Deferred (Unearned) Insurance Revenue $15,000 $ 3,000

c. Insurance Revenue Deferred (Unearned) Insurance Revenue $18,000 $ 0

d. Insurance Revenue Deferred (Unearned) Insurance Revenue $18,000 $18,000

e. Insurance Revenue Deferred (Unearned) Insurance Revenue $ 0 $18,000