During February, the last month of the fiscal year, Be My Valentine Ltd. sells $22,000 of gift cards. From experience, management estimates that 8% of the gift cards sold will not be redeemed by customers. In March, $6,900 of these cards is redeemed for merchandise with a cost of $4,900. In April, further $11,500 of these cards is redeemed for merchandise with a cost of $3,800. 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 companys normal breakage and all other gift cards of the same age had been used.

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 0 for the amounts. Round answers to 0 decimal places, e.g. 125.)

Date	Account Titles and Explanation	Debit	Credit
Choose a transaction month. Feb.Mar.Apr.	Enter an account title to record cash received for gift cards.	Enter a debit amount.	Enter a credit amount.
	Enter an account title to record cash received for gift cards.	Enter a debit amount.	Enter a credit amount.
	(Cash received for gift cards)
	Enter an account title to record breakage.	Enter a debit amount.	Enter a credit amount.
	Enter an account title to record breakage.	Enter a debit amount.	Enter a credit amount.
	(To record breakage)
Choose a transaction month. Feb.Mar.Apr.	Enter an account title to record gift cards redeemed for merchandise.	Enter a debit amount.	Enter a credit amount.
	Enter an account title to record gift cards redeemed for merchandise.	Enter a debit amount.	Enter a credit amount.
	(Gift cards redeemed for merchandise)
	Enter an account title to record cost of merchandise.	Enter a debit amount.	Enter a credit amount.
	Enter an account title to record cost of merchandise.	Enter a debit amount.	Enter a credit amount.
	(To record cost of merchandise)
	Enter an account title to record breakage.	Enter a debit amount.	Enter a credit amount.
	Enter an account title to record breakage.	Enter a debit amount.	Enter a credit amount.
	(To record breakage)
Choose a transaction month. Feb.Mar.Apr.	Enter an account title to record gift cards redeemed for merchandise.	Enter a debit amount.	Enter a credit amount.
	Enter an account title to record gift cards redeemed for merchandise.	Enter a debit amount.	Enter a credit amount.
	(Gift cards redeemed for merchandise)
	Enter an account title to record cost of merchandise.	Enter a debit amount.	Enter a credit amount.
	Enter an account title to record cost of merchandise.	Enter a debit amount.	Enter a credit amount.
	(To record cost of merchandise)
	Enter an account title to record breakage.	Enter a debit amount.	Enter a credit amount.
	Enter an account title to record breakage.	Enter a debit amount.	Enter a credit amount.
	(To record breakage)

eTextbook and Media

List of Accounts

How much income (if any) was earned in each of these months? (Round answers to 0 decimal places, e.g. 125.)

		February		March		April
Sales revenue		$Enter a dollar amount rounded to 0 decimal places.		$Enter a dollar amount rounded to 0 decimal places.		$Enter a dollar amount rounded to 0 decimal places.
Cost of goods sold		Enter a dollar amount rounded to 0 decimal places.		Enter a dollar amount rounded to 0 decimal places.		Enter a dollar amount rounded to 0 decimal places.
Gross margin		$Enter a total amount.		$Enter a total amount.		$Enter a total amount.

eTextbook and Media

List of Accounts

What liability (if any) would appear on the companys statement of financial position at the end of each of these months? (Round answers to 0 decimal places, e.g. 125.)

Balance, February 28		$Enter a dollar amount rounded to 0 decimal places.
Balance, March 31		$Enter a dollar amount rounded to 0 decimal places.
Balance, April 30		$Enter a dollar amount rounded to 0 decimal places.