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Question - Lululemon, Inc., an athletic apparel company, offers gift cards to their customers. Lululemon reported a balance of $196,000 in Deferred Revenues from gift cards as of January 1, 20X1. During 20X1, Lulu sold $435,000 of gift cards and redeemed $392,000. Lulu also reliably estimated that an additional $37,000 of gift cards were past the point of redemption and concluded these cards would never be redeemed. Determine the ending balance in the Deferred Revenue account for Gift Cards?
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