How much revenue will circuittown recognize with respect

Assignment Help Accounting Basics

Reference no: EM133370112

Case Study: CircuitTown commenced a gift card program in January 2018 and sold $15,350 of gift cards in January, $17,950 in February, and $20,950 in March of 2018 before discontinuing further gift card sales. During 2018, gift card redemptions were $8,700 for the January gift cards sold, $4,650 for the February cards, and $6,300 for the March cards. CircuitTown considers gift cards to be "broken" (not redeemable) 10 months after sale.

Question:
1. How much revenue will CircuitTown recognize with respect to January gift card sales during 2018?
2. Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration) of gift cards.
3. How much revenue will CircuitTown recognize with respect to March gift card sales during 2018?
4. What liability for deferred revenue associated with gift card sales would CircuitTown show as of December 31, 2018?

Reference no: EM133370112

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