Using the accrual method, the unearned revenue as of December 31 is $12,000.
What is Unearned revenue?
Unearned revenue can be defined as the amount a company received from their client for the service they are yet to rendered.
Since the company has received full balance for the services not yet provided. The unearned revenue as of December 31 will be $12,000 .
Reason been that the amount that the client paid the company is for a year-long contract, hence the $12,000 represent a prepayment amount for the service the company is yet to rendered to their client
Inconclusion using the accrual method, the unearned revenue as of December 31 is $12,000.
Learn more about unearned revenue here:https://brainly.com/question/5010039
