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During December 2020, Soft Skin Ltd. sells $29,500 of gift cards to customers. From reliable past experience, management estimates that 7% of the gift cards
During December 2020, Soft Skin Ltd. sells $29,500 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, $2,100 of these cards is redeemed for merchandise with a cost of $1,575. In February 2021, a further $10,700 of these cards is redeemed for merchandise with a cost of $8,560. The company uses a perpetual inventory system and has a February 28 year end. A. prepare jounal entry for jan 2021 . B prepare journal entry for feb 2021
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