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The following facts relate to gift cards sold by Sunbru Coffee Company during 2019. Sunbru's fiscal year ends on December 31. a) In October
The following facts relate to gift cards sold by Sunbru Coffee Company during 2019. Sunbru's fiscal year ends on December 31. a) In October 2019, sold $3,800 of gift cards, and redeemed $580 of those gift cards. b) In November 2019, sold $4,800 of gift cards, and redeemed $1,480 of October gift cards and $780 of November gift cards. c) In December 2019, sold $3,800 of gift cards, and redeemed $280 of October gift cards, $2,800 of 6 November gift cards, and $480 of December gift cards. d) Sunbru views a gift card to be "broken" (with a remote probability of redemption) two months after the end of the month in which it is sold. Thus, an unredeemed gift card sold at any time during July would be viewed as broken as of September 30. Prepare all journal entries appropriate to be recorded only during the month of December 2019 relevant to gift card sales, gift card redemptions, and gift card breakage. 8 9 Date 20 21 22 23 24 25 26 27 28 385 29 30 31 Account What is the balance in the Gift Card Liability account? 01-8 02-16 02 Debit Credit
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