Regal Department Store sells gift certificates redeemable for store merchandise that expire one year after their issuance.
Question:
Unredeemed at 12/31/13 ............ $ 75,000
2014 sales ................. 250,000
2014 redemptions of prior year sales ...... 25,000
2014 redemptions of current year sales ...... 175,000
Regal’s experience indicates that 10% of gift certificates sold will not be redeemed.
Required:
In its December 31, 2014, balance sheet, what amount should Regal report as unearned revenue?
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Step by Step Answer:
Year 2010 Sales Unredeemed at 123110 75000 Sold in 2010redeemed in 2...View the full answer
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Ali Khawaja
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Related Book For 
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
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