Current Attempt in Progress During February, the last month of the fiscal year, Be My Valentine Ltd. sells $21,500 of gift cards. From experience, management estimates that 8% of the gift cards sold will not be redeemed by customers. In March, $4,600 of these cards is redeemed for merchandise with a cost of $2,600. In April, further $13.800 of these cards is redeemed for merchandise with a cost of $4,600. The company uses a perpetual inventory system. Also in February, Be My Valentine had $1,000 of unused gift cards that were over one year old and were not expected to be used. The amount was in line with the company's normal breakage and all other gift cards of the same age had been used. Prepare journal entries to record the transactions for February, March, and April. (Enter debit entries first followed by credit entries. 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 O for the amounts. Round answers to O decimal places, e.g. 125.) Date Account Titles and Explanation Feb. v Cash Gift Card Liability (Cash received for gift cards) Gift Card Liability Debit $21,500 $1,720 Credit $21,500 ment Question 1 of 1 Date Account Titles and Explanation Feb. Cash Gift Card Liability (Cash received for gift cards) Gift Card Liability Sales Revenue (To record breakage) Mar. Gift Card Liability Sales Revenue (Gift cards redeemed for merchandise) -/22 E Debit Credit $21.500 $1,720 $4,600 $21,500 $1.720 $4,600 Question 1 of 1 < Mar Apr 3 > (To record breakage) Gift Card Liability Sales Revenue (Gift cards redeemed for merchandise) Cost of Goods Sold Inventory (To record cost of merchandise) Gift Card Liability Sales Revenue (To record breakage). Gift Card Liability Sales Revenue -/22 E $4,600 $4,600 $2,600 $12.580 $13,800 $2,600 $12.580 $13.800 Question 1 of 1 Apr. < (To record breakage) Gift Card Liability $13,800 Sales Revenue (Gift cards redeemed for merchandise) Cost of Goods Sold Inventory (To record cost of merchandise) Gift Card Liability Sales Revenue (To record breakage) Truthook.and Media $4,600 $1,300 -/22 $13.800 $4,600 $1.380 Question Part Score How much income (if any) was earned in each of these months? (Round answers to O decimal places, eg 125) February $ Sales revenue Cost of goods sold Gross margin $ eTextbook and Media List of Accounts Question Part Score March $ April $ -/22 E E -14 -4/5 Question 1 of 1 -/22 What liability (if any) would appear on the company's statement of financial position at the end of each of these months? (Round answers to O decimal places, eg. 125.) Balance, February 28 $ Balance, March 31 $ Balance, April 30 $ eTextbook and Media List of Accounts Question Part Score Save for Later Last saved 15 days ago. Attempts: 0 of 3 used Submit Answer /3