Record the receipt of cash for gift cards

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Reference no: EM132170176

Question - Apple Inc. is the number one online music retailer through its iTunes music store. Apple sells iTunes gift cards in $15, $25, and $50 increments. Assume Apple sells $20.6 million in iTunes gift cards in October, and customers redeem $13.6 million of the gift cards in November.

1. Record the receipt of cash for gift cards.

2. Record the revenue earned from redemption of gift cards.

3. What is the ending balance in Deferred revenue.

Reference no: EM132170176

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