15) In January, 2021, Summit Department Store sells a gift card for $50 and receives cash In February, 2021, the customer comes back and spends $20 of the gift card to purchase a water bottle What would be the appropriate journal entry for the customer's purchase of the water bottle in February A) Debit Deferred Revenue, $50 credit Sales Revenue, $50 B) Debit Sales Revenue, $20 credit Deferred Revenue, $20 C) Debit Deferred Revenue, $20 credit Sales Revenue, $20 D) No journal entry is necessary 16) Suppose you buy lunch for $8 39 that includes a 5 sales tax How much did the restaurant charge you for the lunch (excluding any tax) and how much does the restaurant owe for sales tax (Do not round intermediate calculations Round the answers to 2 decimal places ) A) $8 81 for lunch and $0 42 for sales tax B) $8 39 for lunch and no sales tax C) $7 99 for lunch and $0 40 for sales tax D) $8 39 for lunch and $0 42 for sales tax 17) Away Travel filed suit against West Coast Travel seeking damages for copyright violations Away Travel's legal counsel believes it is probable (but not certain) that Away Travel will win the lawsuit for an estimated amount in the range of $100,000 to $200,000, with all amounts in the range considered equally likely How should Away Travel report this litigation A) As a receivable for $200,000 with disclosure of the range B) As a disclosure only No receivable is reported C) As a receivable for $100,000 with disclosure of the range D) As a receivable for $150,000 with disclosure of the range 18) While providing services to Palmer Co , Raider Group caused damages of $125,000 As of the end of the year, both parties agree that it is probable that Raider will pay Palmer the full amount of the damages within the next two months How would Raider and Palmer report the lawsuit at the end of the year A) Raider reports nothing Palmer reports a gain B) Raider reports nothing Palmer reports nothing C) Raider reports a loss Palmer reports nothing D) Raider reports a loss Palmer reports a gain

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15) In January, 2021, Summit Department Store sells a gift card for $50 and receives cash  In February, 2021, the customer comes back and spends $20 of the gift card to purchase a water bottle  What would be the appropriate journal entry for the customer's purchase of the water bottle in February  A) Debit Deferred Revenue, $50  credit Sales Revenue, $50  B) Debit Sales Revenue, $20  credit Deferred Revenue, $20  C) Debit Deferred Revenue, $20  credit Sales Revenue, $20  D) No journal entry is necessary  16) Suppose you buy lunch for $8 39 that includes a 5  sales tax  How much did the restaurant charge you for the lunch (excluding any tax) and how much does the restaurant owe for sales tax  (Do not round intermediate calculations  Round the answers to 2 decimal places ) A) $8 81 for lunch and $0 42 for sales tax  B) $8 39 for lunch and no sales tax  C) $7 99 for lunch and $0 40 for sales tax  D) $8 39 for lunch and $0 42 for sales tax  17) Away Travel filed suit against West Coast Travel seeking damages for copyright violations  Away Travel's legal counsel believes it is probable (but not certain) that Away Travel will win the lawsuit for an estimated amount in the range of $100,000 to $200,000, with all amounts in the range considered equally likely  How should Away Travel report this litigation  A) As a receivable for $200,000 with disclosure of the range  B) As a disclosure only  No receivable is reported  C) As a receivable for $100,000 with disclosure of the range  D) As a receivable for $150,000 with disclosure of the range  18) While providing services to Palmer Co , Raider Group caused damages of $125,000  As of the end of the year, both parties agree that it is probable that Raider will pay Palmer the full amount of the damages within the next two months  How would Raider and Palmer report the lawsuit at the end of the year  A) Raider reports nothing  Palmer reports a gain  B) Raider reports nothing  Palmer reports nothing  C) Raider reports a loss  Palmer reports nothing  D) Raider reports a loss  Palmer reports a gain

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15) In January, 2021, Summit Department Store sells a gift card for $50 and receives cash. In February, 2021, the customer comes back and spends

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