As noted, Best Buy establishes a liability to record the sale of gift cards. Assume that you purchase a $$100$ gift card from Best Buy as a

birthday present for a friend. Prepare the journal entries made by Best Buy to record $(1)$ your purchase of the gift card and $(2)$ the use

of the gift card by your friend to purchase a $$100$ set of headphones. $($If no entry is required for a transaction$/$event$,$ select $"$No journal

entry required" in the first account field.$)$

Journal entry worksheet

Record the sale of a $$100$ gift card.

Note: Enter debits before credits. As noted, Best Buy establishes a liability to record the sale of gift cards. Assume that you purchase a $$100$ gift card from Best Buy as a

birthday present for a friend. Prepare the journal entries made by Best Buy to record $(1)$ your purchase of the gift card and $(2)$ the use

of the gift card by your friend to purchase a $$100$ set of headphones. $($If no entry is required for a transaction$/$event$,$ select $"$No journal

entry required" in the first account field.$)$

Journal entry worksheet

$1$

Record the redemption of a $$100$ gift card.

Note: Enter debits before credits.The following information was taken directly from the footnotes to the financial statements of Best Buy.

"A gift card liability is initially established for the value of gift cards when they are sold. We recognize revenue from gift cards when

the cards are redeemed by customers."

"Advertising costs, which are included in SG&A$,$ are expensed when the advertisement is customer$-$facing."

$"$We compute depreciation using the straight$-$line method over the estimated useful lives of the assets."

a$.$ Based on the above footnote items, state whether the following statements are true or false.

b$.$ As noted, Best Buy establishes a liability to record the sale of gift cards. Assume that you purchase a $$100$ gift card from Best Buy as

a birthday present for a friend. Prepare the journal entries made by Best Buy to record $(1)$ your purchase of the gift card and $(2)$ the use

of the gift card by your friend to purchase a $$100$ set of headphones.

Complete this question by entering your answers in the tabs below.

Required $A$

Based on the above footnote items, state whether the following statements are true or false.