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.

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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

What amount, if any, will appear on the SFP concerning gift cards at February 28, 2021?

The SFP will show a balance of $enter a dollar amount as a select an item for unredeemed gift cards.

View Policies Current Attempt in Progress 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 the journal entry needed for December 2020. (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 for the amounts.) Date Account Titles and Explanation Debit Credit December, 2020 e Textbook and Media List of Accounts Prepare the journal entry needed for the January 2021 redemptions. (Credit account titles are automatically indented when diamond 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 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit January, 2021 (To record sales) January, 2021 (To record cost of goods sold) e Textbook and Media List of Accounts 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 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit February, 2021 (To record sales) February 2021 (To record cost of goods sold) e Textbook and Media List of Accounts 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 0 decimal places. e.3. 5.275.) Date Account Titles and Explanation Debit Credit February, 2021 (To record sales) February 2021 (To record cost of goods sold) e Textbook and Media List of Accounts