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Waterway Industries sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or three-year period. Cash receipts from contracts

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Waterway Industries sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or three-year period. Cash receipts from contracts are credited to Unearned Service Revenue. This account had a balance of $ 5699000 at December 31, 2020 before year end adjustment Service contract costs are charged as incurred to the Service Contract Expense accont, which had a balance of $1345000 at December 31, 2020, Service contracts still outstanding at December 31, 2020 expire as follows: During 2021 S 1444000 During 2022 1715000 During 2023 1047000 What amount should be reported as Unearned Service Revenue in Waterway's December 31, 2020 balance sheet? What amount should be reported as Unearned Service Revenue in Waterway's December 31, 2020 balance sheet? O $ 4206000. O $ 4354000 O $ 1493000. $ 2838000

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