During February, the last month of the fiscal year, Be My Valentine Ltd. sells $20,000 of gift cards. From experience, management estimates that 8% of the gift cards sold will not be redeemed by customers. In March. $2,300 of these cards is redeemed for merchandise with a cost of $200. 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 were over 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. Your answer is partially correct Prepare journal entries to record the transactions for February March, and April. (Enter debit entries first followed by credit entries. 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 Round answers to decimal places, eg. 125) Date Account Titles and Explanation Debit Credit Feb v journal entry number 1 20.000 Cash 20 000 (Cash received for gift cards) Gift Card Liability 20.000 0 0 Gift Card sale (To record breakage) Journal entry for 8% not redemption Apr. v 0 unused gift card 0 (Gift cards redeemed for merchandise) Unearned Revenue 2.600 2,600 gift card breakage revenue 2,600 nment Question 1 of 6 1.15/22 Cach 20.000 (Cash received for gift cards) G Cad Liability 20.000 G Card sale 0 (To record breakage) Journal entry for not redemption Apr unused card (Gift cards redeemed for merchandise) Uneaed Revenue 2.400 2600 2.600 gift card breakage revenue (To record cost of merchandisel (To record breakage) March journal entries Mar 500 500 SCO Gift Card Liability (Gift cards redeemed for merchandise) revenue 500 500 SOO 500 gift card transaction being redemption (To record cost of merchandise) 918.500 O 57.000 (To record breakage) Question 1 of 6 1.15 / 22 Your answer is incorrect How much income (if any) was earned in each of these months? (Round answers to decimal places.es 125.) March April February $ $ 17.900 5 12.900 Sales revenue Cost of goods sold Gross margin $ eTextbook and Media Assistance Used List of Accounts Assistance Used Your answer is incorrect. 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.) $ 18.400 Balance, February 28 $ 17.900 Balance, March 31 $ 12.900 Balance, April 30 e Textbook and Media List of Accounts