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FFelton Co. sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or three-year period.

FFelton Co. 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 contract revenues. This account had a balance of $480,000 at December 31, 2009 before year-end adjustment. Service contract costs are charged as incurred to the service contract expense account, which had a balance of $120,000 at December 31, 2009. Outstanding service contracts at December 31, 2009 expire as follows:

What amount should be reported as unearned service contract revenues in Felton's December 31, 2009 balance sheet? (Points: 4)
$360,000.
$330,000.
$240,000.
$220,000.
elton Co. sells major household appliance service contracts for cash

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