Peterson Photoshop sold $1,300 in gift cards on a special promotion on October 15, 2018, and sold $1,950 in gift cards on another special promotion on November 15, 2018. Of the cards sold in October, $130 were redeemed in October, $325 in November, and $390 in December. Of the cards sold in November, $195 were redeemed in November and $455 were redeemed in December. Peterson views the probability of redemption of a gift card as remote if the card has not been redeemed within two months. At 12/31/2018, Peterson would show an deferred revenue account for the gift cards with a balance of:

Multiple Choice

• $1,950.

• $1,300.

• $0.

• $1,755.