Woodwards Store Sells Major Household Appliance Service Contracts for Cash

Woodwards Store 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 Revenue. This account had a balance of $ 600,000 at December 31, 2019 before year-end adjustment. Service contract costs are charged as incurred to the service contract expense account, which had a balance of $ 150,000 at December 31, 2019. Outstanding service contracts at December 31, 2019 expire as follows:

$\begin{array}{ll} \text{ \(\underline{\text{ During 2020 }}\) } & \ \quad \text{ \(\underline{\text{ During 2021 }}\) } \quad\quad\quad \quad \text{\(\underline{\text{ During 2022 }}\) } & \\ {\text { }}{\$ 125,000} & \quad \quad \text{\$200,000 } \quad \quad \quad \quad \quad\quad \text{\$90,000 } \quad \quad\quad \quad \quad \quad\quad \quad\quad \quad \quad \quad \quad \\ \end{array}$

What amount should be reported as Unearned Revenue in Woodwards' December 31, 2019 statement of financial position?

A) $ 450,000
B) $ 415,000
C) $ 300,000
D) $ 275,000