Denny 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 Revenues. This account had a balance of $900,000 at December 31, 2001 before year-end adjustment. Service contracts still outstanding at December 31, 2001 expire as follows:
What amount should be reported as Unearned Service Revenues in Denny's December 31, 2001 balance sheet?
a) $900,000
b) $600,000
c) $1,500,000
d) $300,000