Peterson Photoshop sold $1,000 in gift cards on a special promotion on November 1, 2016 and...
- Peterson Photoshop sold $1,000 in gift cards on a special promotion on November 1, 2016 and sold $1,500 in gift cards on another special promotion on December 1, 2016. All gift card sales were for cash. Of the cards sold in October, $100 were redeemed in October, $250 in November, and $300 in December. Of the 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.
- Prepare the journal entries on November 30, 2016, to record the November sale of gift cards and the total redemption of gift cards in November
- Prepare the journal entries on December 31, 2016, to record the December sale of gift cards, the total redemption of gift cards in December, and breakage of gift cards.
- What amount should Peterson Photoshop report as the balance of the deferred revenue accounting with gift cards at December 31, 2016, on its balance sheet?
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Peterson Photoshop sold $1,000 in gift cards on a special
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