During December 2020, Soft Skin Ltd. sells $28,500 of gift cards to customers. From reliable past experience, management estimates that 6% 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 $11,000 of these cards is redeemed for merchandise with a cost of $8,800. The company uses a perpetual inventory system and has a February 28 year end.

Question 10 of 15 1.75 / 7 III Prepare the journal entry needed for the January 2021 redemptions. (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. 5,275.) Date Account Titles and Explanation Debit Crei January, 2021 (To record sales) January, 2021 UU (To record cost of goods sold) e Textbook and Media List of Accounts Question Part Score 0/1.75 X Your answer is incorrect. Prepare the journal entry needed for the February 2021 redemptions. (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. 5,275.) Date Account Titles and Explanation Debit Cre February, 2021 (To record sales) February, 2021 (To record cost of goods sold) What amount, if any, will appear on the SFP concerning gift cards at February 28, 2021? The SFP will show a balance of $ as a Al for unredeemed e Textbook and Media List of Accounts -