CP4-1 (Static) Finding Financial Information LO4-1, 4-3, 4-4 [Refer to the financial statements of Target Corporation in Appendix B.] Required:

Did the company accrue more or pay more for wages and benefits in the most recent fiscal year and by how much? See Note 14.

Did the company receive more or accrue more for accounts and other receivables in the most recent fiscal year and by how much? See Note 10.

Of the $935 balance in gift card liability on February 1, 2020, what adjusting entry did Target make to recognize revenue during the most recent year for gift cards redeemed by customers? See Note 3. Of the $935 balance in gift card liability on February 1, 2020, what adjusting entry did Target make to recognize revenue during the most recent year for gift cards redeemed by customers? See Note 3.

Option	Debit	Credit
a.	Cash	1,035	Gift card liability	1,035
b.	Cash	739	Sales revenue	739
c.	Sales revenue	739	Gift card liability	739
d.	Gift card liability	639	Sales revenue	639

1. What is(are) Targets revenue recognition policy(ies) for merchandise sales?
2. Which of the following is included in the closing entry for Target for the most recent year?
3. What is the total asset turnover ratio for the most recent fiscal year and what does this suggest about the company?