Accounting for Gift Cards

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 Year $1.$

b$.$ Record the redemption of gift cards in Year $2.$

c$.$ Record revenue in Year $2$ 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$).$