Accounting for Gift Cards Assume Ikeo Inc. sold $100,000 of gift cards during the last two weeks of December 2020. No gift cards were redeemed in 2020, while $90,000 of the gift cards were redeemed for store purchases during 2021. On December 31, 2021, Ikeo Inc. calculates the remaining balance of unredeemed gift cards of $10,000 ($100,000 less $90,000). Based on previous experiences, Ikeo estimates gift card breakage to be 5% of total gift card sales. Ikeo uses the proportional method to recognize income on gift card breakage. Required a. Record the sale of gift cards in 2020. b. Record the redemption of gift cards in 2021. c. Record revenue in 2021 due to gift card breakage using the proportional method. Note: Carry all decimals in calculations; round the final answer to the nearest dollar. Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). a. Cash Account Name Estimated Litigation Liability b. Estimated Litigation Liability Dr. Cr. 100,000 0 0 100,000 90,000 0 0 90,000 C. 0 0 Gift Card Breakage Revenue 0 0 Warranty Liability