Question

Maffett Ticket Brokers is a reseller of tickets to sporting events and concerts. During 2019, Maffett sold gift cards totaling $250,000 Based on past experience, Maffett expects that 1% of the gift card purchases will not be redeemed by the time they expire, five years after issuance During 2019, $150,000 of the gift card purchases from 2019 were used to purchase tickets that had cost Maffett $90,000 Required 1. Prepare the journal entry Maffett uses to record its activity related to the above transactions in 2019, assuming state law does not require Maffett to remit the breakage to the state 2. Prepare the journal entry Maffett uses to record its activity related to the above transactions in 2019, assuming state law requires Maffett to remit the breakage to the state upon expiration of a gift card Complete this question by entering your answers in the tabs below Required 1Required 2 Prepare the journal entry Maffett uses to record its activity related to the above transactions in 2019, assuming state law does not require Maffett to remit the breakage to the state. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 100,000 Liability for gift certificates Liability for gift certificates 150,000 247,500 Sales revenue 247,500 90,000 90,000

Answer 1