Question: Apple Inc. is the number one online music retailer through its iTunes music store. Apple sells iTunes gift cards in $15, $25, and $50 increments.

Apple Inc. is the number one online music retailer through its iTunes music store. Apple sells iTunes gift cards in $15, $25, and $50 increments. Assume Apple sells $21 million in iTunes gift cards in November, and customers redeem $14 million of the gift cards in December.

Required:

1. Record the advance collection of $21 million for iTunes gift cards in November.

2. Record the revenue recognized when $14 million in gift cards is redeemed in December.

3. What is the ending balance in the Deferred Revenue account?

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Unearned Revenues Unearned revenue is summarized as follows Unearned revenue is a prepayment made by the individuals before receiving the product or s... View full answer

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