Question
la panaderia del sol (lps) a mexican bakery, sold a gift card for 1,000 pesos on december 1 year 1. at the time of the
la panaderia del sol (lps) a mexican bakery, sold a gift card for 1,000 pesos on december 1 year 1. at the time of the sale, lps debited cash and credited an unearned revenue liability. the card has no fees or expiration date. lps has reliable historical evidence that breakage rates on such cards will be 10 percent of the sale price. the customer redeemed the card during the month of december for food items with menu prices totally 540 pesos. lps closes its fiscal year on december 31. how much revenue did lps record for the customer's purchases using the card during december? compute the value of the unearned revenue liability connected to the card as of december 31, year 1
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