Question
Colbert sells 20 non-refundable $100 gift cards for 3-D printer plastic on March 1, 2020. The plastic has a stand-alone selling price of $100 (cost
Colbert sells 20 non-refundable $100 gift cards for 3-D printer plastic on March 1, 2020. The plastic has a stand-alone selling price of $100 (cost $80). The gift card expiration date is June 30, 2020. Colbert estimates that customers will not redeem 10% of these gift cards.
The pattern of redemption is as follows:
Date | Cumulative Redemption Rate |
March 31 | 50% |
April 30 | 80% |
June 30 | 85% |
Prepare the 2020 journal entries related to the gift cards at March 1, March 31, April 30, and June 30. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started