Record the sale of the gift certificates

Reference no: EM131410693

Norsums Department Store sells gift certificates that are redeemable in merchandise. During 2011, Norsums sold gift certificates for $88,000. Merchandise with the total price of $52,000 was redeemed during the year. The cost of the sold merchandise to Norsums was $32,000. Norsums sold gift certificates for the first time in 2011.

a. Record the sale of the gift certificates.

b. Record the redemption during 2011. Assume that Norsums uses the perpetual inventory method.

c. Compute the balance in the unearned revenue account as of December 31, 2012, assuming that gift certificates were sold for $60,000 in 2012 and merchandise with a total price of $80,000 was redeemed.

Reference no: EM131410693

Questions Cloud

What is the significance of being fluent in history : What is the significance of being fluent in history as it relates to critical thinking, e.g. Black history of Mexico? How do you think not knowing history contributes to un-critical thinking

Compute the cash payments made to suppliers during 2008 : Assume that accounts payable reflects only accounts with inventory suppliers, and compute the cash payments made to suppliers during 2008.

Minimum volume of pressurized oxygen : A person on a Haz Mat team will be working for 1.5 hr while breathing oxygen from a pressurized tank. While working, they will be burning energy at a rate of 250 Cal/hr. The tank stores the gas at 20 MPa. What minimum volume of pressurized ox..

Why do lenders often refuse to finance 100 percent of cost : Why do lenders often refuse to finance 100 percent of the cost of a purchase, requiring borrowers to make a down payment that covers a portion (typically from 10 to 25 percent) of the purchase price?

Record the sale of the gift certificates : Compute the balance in the unearned revenue account as of December 31, 2012, assuming that gift certificates were sold for $60,000 in 2012 and merchandise with a total price of $80,000 was redeemed.

Conduct research and deliver findings : Conduct research and deliver findings in professional settings.No matter how extensive the research or accurate the conclusions, a weak presentation can undermine an argument.

How do you find the right balance : On the other hand, being too optimistic could be detrimental to prospective investors or creditors. How do you find the right balance?

What is amnesty international and why is it so important : Pick one of the signs that you may see that lets you know that the end of the helping relationship is near and discuss how this sign may present itself. - (Client recognize problem has decreased or is gone) What is Amnesty International and why is ..

How much mass have they put on at the end of the year : Sitting has a metabolic rate of 50 Cal/hr m2. Assume that each beer was Sierra Nevada Pale Ale, 175 Cal per beer, their surface area is a constant 1.7 m2, and that the added weight would be fat. This fat has no water content. How much mass have th..

User Account

All Pages