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Problem - Unearned Revenue: Gift Certificates - On December 5, 2019, Super Circuit Store sold gift certificates totaling $12,000. By December 31, 2019, all but $2,125 worth of these certificates had been redeemed for merchandise. Outstanding certificates were then redeemed by January 15, 2020.
Required -
1. Prepare journal entries on Super Circuit's books to reflect the preceding transactions.
2. How would the gift certificates be reported on Super Circuit's balance sheet on December 31, 2019?
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