Current Attempt in Progress

During February, the last month of the fiscal year, Be My Valentine Ltd$.$ sells $$20,600$ of gift cards. From experience, management estimates that $8\%$ of the gift cards sold will not be redeemed by customers. In March, $$4,600$ of these cards is redeemed for merchandise with a cost of $$3,100.$ In April, further $$11,500$ of these cards is redeemed for merchandise with a cost of $$3,800.$ 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.

Your answer is partially correct.

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 $0$ for the amounts. Round answers to O decimal places, e$.$g$.125.)$