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Determine the liability for gift certificates to be reported in the December 31, 2013 balance sheet. What is the appropriate classification (current or noncurrent) of the liabilities at December 31, 2013? Show calculations.
Mozart Music Co began operations in December of 2013. The company sold gift certificates during December in various amounts totaling $1,600. The gift certificates are redeemable for merchandise within three years of the purchase date. However, experience within the industry predicts that 90% of gift certificates will be redeemed within one year. Certificates totaling $500 were presented for redemption during 2013 as part of merchandise purchases having total retail price of $750.
pro golf warehouse inc. pgw sells gold equipment all through the united states. pgw also sells golf equipment in canada
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