Question

In Lizzie Shoes' experience, gift cards that have not been redeemed within 12 months are not likely to be redeemed. Lizzie Shoes sold gift cards for $18,800 during August of 2018. $5,400 of cards were redeemed in September of 2018, $3,580 in October, $2,550 in November, and $2.160 in December of 2018. In 2019 an additional $1,530 of cards were redeemed in January and $855 in Februany How much gift card revenue associated with the August 2018 gift card sales would Lizzie get to recognize in 2018 and 2019 Revenu 2018 2019

Answer 1

Year	Revenue
2018	13690
2019	5110

In 2018, Lizzie would recognize $13,690 of revenue ($5400+$3580+$2550+$2160). In 2019 Lizzie would recognize the remainder of $5,110 ($18800-13690), either because gift cards were redeemed (the $1530 in January and the $855 in February) or because they are viewed as expired.