Question
WorstBuy Electronics sold $1,000 in gift cards on a special promotion on October 15, 2024 . Then sold $1,500 in gift cards on another special
WorstBuy Electronics sold $1,000 in gift cards on a special promotion on October 15, 2024. Then sold $1,500 in gift cards on another special promotion on November 15, 2024.
Of the cards sold in October:
$100 were redeemed in October, $250 in November, and $300 in December.
Of the gift cards sold in November
$150 were redeemed in November and $350 were redeemed in December.
WorstBuy knows people lose their gift cards if they don't redeem them within 2 months and so there is only a remote chance the gift card will be redeemed after these 2 months.
At 12/31/2024, WorstBuy would show a deferred revenue account for the gift cards with a balance of:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started