Question

Apple Inc. is the number one online music retailer through its iTunes music store. Apple sells iTunes gift cards in S15, $25. and $50 increments. Assume Apple sells $20.7 million in iTunes gift cards in November, and customers redeern 5137 million of the gift cards in December Required: 1. & 2. 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. Enter your answers in dollars, not in millions (ie. 5.5 should be entered as 5,500,000).) View transaction list Journal entry worksheet Record the receipt of cash for gift cards. Note: Enter debits before credits General Journal Debit Credit

Answer 1

1$20,700,000 $20700,000 Answer: 182) Journal entries Date particulars ILF Debit Teredit Nov-sd cash ale To Deferred reveure-Gift cards Being record sale of gift cards] Dec-3) Deferred revence - Giftcard Ale or $13,700,000 $13700,000 1. To sales Revence Being record redemption #gift cards by customer] 3) Ending balance of deferred revence account = $20,700,000-$13,700,000 .. Ending balance of deferred revenue account = $7000,000