The Smith Daughters, Inc. started and ended the year with unearned revenue account balances of $500,000 and $485,000. Smith Daughters collects all payments in advance of service. The company earned $2,000,000 of revenue from customers. How much cash did the company collect as advances from customers during the year?
Cash collections in advance from the customers = Ending balance + Earned income - Opening balance
= $485,000 + $2,000,000 - $500,000
= $1,985,000
The Smith Daughters, Inc. started and ended the year with unearned revenue account balances of $500,000...