During December 2020, Soft Skin Ltd. sells $24,000 of gift cards to customers. From reliable past experience, management estimates that 7% of the gift cards sold will not be redeemed by customers. In January 2021,$2,300 of these cards is redeemed for merchandise with a cost of $1,725. In February 2021 , a further $9,900 of these cards is redeemed for merchandise with a cost of $7,920. The company uses a perpetual inventory system and has a February 28 year end