Question

Vail is one of the largest ski resorts in the United States. Suppose that on October 1, 2021, Vail sells gift cards (lift passes) for $100,000. The gift cards are redeemable for one day of skiing during the upcoming winter season. The gift cards expire on April 1, 2022. Customers redeem gift cards of $20,000 in December, $30,000 in January, $25,000 in February, and $15,000 in March. Required: 1.-4. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 Record the redemption of gift cards in 2022 by preparing a summary entry as of March 31, 2022. Note: Enter debits before credits. Debit Credit Date Account Title March 31, befe Deferred Revenue 2022 Sales Revenue 15,000 15,000 Record entry Clear entry View general journal

Answer 1

octo ber 1St aoa CashBank Deferrad Ruenue Debib (vedih Floo0o0 $100000 Deamber De ferred Revenue Sales Ruenue $ doooo Saoo00 Tanuauy Deferred Reuuenue Sales Rauenue 30000 $30000 Feb De femed Revnue Seles Reuanue 25000 $asooo Mareh $L5000 De ferred Rouenue Sales Rovenme $S0o0

Answer 2

* explanation on the bottom

1	Oct. 1
		Cash	100,000
		Deferred Rev		100,000
2	Dec. 31
		Deferred Rev	20,000
		Sales Rev		20,000
*3	Mar. 31
		Deferred Rev	70,000
		Sales Rev		70,000
*4	Apr. 1
		Deferred Rev	10,000
		Sales Rev		10,000

*3. You add all sales from Jan. 1 to Mar. 31

      (30,000 + 25,000 + 15,000) = 70,000

*4. Leftover gift card is treated as if you sold it. 

        (100,000 - 70,000 - 20,000) = 10,000