Question
At December 31, 2020, Sharon's boutique had 2050 gift certificates outstanding, which had been sold to customers during 2020 for $70 each. Sharon's operates on
At December 31, 2020, Sharon's boutique had 2050 gift certificates outstanding, which had been sold to customers during 2020 for $70 each. Sharon's operates on a gross profit of 60% of its sales. What amount of revenue pertaining to the 2050 outstanding gift certificates should be deferred at December 31, 2020?
A. $143,500
B. $0
C. $57,400
D. $86,100
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Financial Accounting
Authors: Alan Melville
2nd Edition
0273634399, 978-0273634393
