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During February, the last month of the fiscal year, Be My Valentine Ltd. sells $21,500 of gift cards. From experience, management estimates that 8% of

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During February, the last month of the fiscal year, Be My Valentine Ltd. sells $21,500 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 $2,600. In April, further $13,800 of these cards is redeemed for merchandise with a cost of $4,600. The company uses a perpetual inventory system. Also in February, Be My Valentine had $1,000 of unused gift cards that werbover 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. Date Credit Debit Account Titles and Explanation Feb Cash 21500 2150% Gift Card Liability (Cash received for gift cards) Gift Card ability 1000 100% (To record breakage) Gift Card Liability Mar. 4600 4604 Sales Revenue (Gift cards redeemed for merchandise) Cost of Goods Sold 2500 2504 (To record cost of merchandise) (To record breakage) Gift Card Liability 13800 Sales Revenue 1380 (Gift cards redeemed for merchandise) Cost of Goods Sold 4600 4606 (To record cost of merchandise) (To record breakage) Your answer is partially correct. How much income (if any) was earned in each of these months? (Round answers to decimal places, eg 125) February March April 1000 Sales revenue Cost of goods sold 2500 Gross margin 2100 4600 $ 13800 4600 1000 $ $ 9200 eTextbook and Media List of Accounts Question Part Score 2.2/5 Your answer is partially correct What liability (if any) would appear on the company's statement of financial position at the end of each of these months? (Round answers to decimal places, eg. 125) $ Balance, February 28 21500 $ Balance, March 31 15900 $ 2100 Balance, April 30 eTextbook and Media List of Accounts

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