jeanieb
jeanieb
08.04.2020 • 
Business

Peterson Photoshop sold $1,000 in gift cards on a special promotion on October 15, 2021, and sold $1,500 in gift cards on another special promotion on November 15, 2021. 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. Peterson views the probability of redemption of a gift card as remote if the card has not been redeemed within two months. At 12/31/2021, Peterson would show a deferred revenue account for the gift cards with a balance of.a. Prepare the journal entries on November 30, 2021, to record the November sale of gift cards and the total redemption of gift cards in November

b. Prepare the journal entries on December 31 2021 to record the December sale of gift cards, the total redemption of gift cards in December, and breakage of gift cards.

c. What amount should Peterson Photoshop report as the balance of the deferred revenue accounting with gift cards at December 31, 2021 on its balance sheet?

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