Please give the correct answer for this, Thanks!
During February, the last month of the fiscal year, Be My Valentine Ltd. sells $22,600 of gift cards. From experience, management estimates that 8% of the gift cards sold will not be redeemed by customers. In March, $4,600 of these cards is redeemed for merchandise with a cost of $2,500. 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 0 for the amounts. Round answers to 0 decimal places, e.g. 125.) 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 0 decimal places, e.g. 125.) Date Account Titles and Explanation Debit Credit Feb. Cash 22.600 Gift Card Liability 22,600 (Cash received for gift cards) Gift Card Liability 1.000 Sales Revenue 1,000 (To record breakage) Mar. Gift Card Liability 4.600 Sales Revenue 4,600 (Gift cards redeemed for merchandise) Cost of Goods Sold 2.500 Inventory 2.500 (To record cost of merchandise) Gift Card Liability 1.808 Sales Revenue 1,808 (To record breakage) Apr. Gift Card Liability 13.800 Sales Revenue 13,800 (Gift cards redeemed for merchandise) Cost of Goods Sold 4,600 Inventory 4,600 (To record cost of merchandise) Gift Card Liability 1.000 Sales Revenue 1,000 (To record breakage) Your answer is partially correct. How much income (if any) was earned in each of these months? (Round answers to decimal places, e.g. 125.) February March April 1,000 $ 6.408 13,800 Sales revenue Cost of goods sold 2.500 4,600 Gross margin 1,000 $ 3.908 $ 9.200 eTextbook and Media List of Accounts * 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, e.g. 125.) 21,600 Balance, February 28 $ $ Balance, March 31 15,192 $ 1,392 Balance, April 30 eTextbook and Media List of Accounts
