Exercise 13-9 (Algo) Gift Cards (LO13-3] CircuitTown commenced a gift card program in January 2021 and sold $12,900 of gift cards in January, $19,950 in February, and $19,800 in March 2021 before discontinuing further gift card sales. During 2021, gift card redemptions were $8,400 for the January gift cards sold, $5,700 for the February cards, and $5,550 for the March cards. Circuit Town considers gift cards to be broken (not redeemable) 10 months after sale. Required: 1. How much revenue will Circuit Town recognize with respect to January gift card sales during 2021? 2. Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration) of gift cards. 3. How much revenue will Circuit Town recognize with respect to March gift card sales during 2021? 4. What liability for deferred revenue associated with gift card sales would Circuit Town show as of December 31, 2021? X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 2 Req 1 and 3 and 4 How much revenue will Circuit Town recognize with respect to January gift card and March gift card sales during 2021? What liability for deferred revenue associated with gift card sales would Circuit Town show as of December 31, 2021? 1. $ 3. Revenue recognized from January gift card sales Revenue recognized from March gift card sales Year-end deferred revenue liability $ 19,950 X 5,500 X 14,400 4. $ X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 and 3 Req 2 and 4 Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration) of gift cards. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit 1 1 Cash 12,900 Deferred gift card revenue 12,900 2 2 Deferred gift card revenue 5,700 Sales revenue 5,700 X 3 3 5,550 X Deferred gift card revenue Revenue-gift cards 5,550