Reference no: EM132779237

Problem 1: Piccadilly, Inc. sells gift cards which can be redeemed for store merchandise. These cards expire one year after their issuance. Below is some information about Piccadilly's gift cards:

                                                           31/12/2014                   31/12/2013
Unearned Revenue                              £25,000                       20,000
Gift cards sold in fiscal year                      127,000                 125,000

a. The amount of revenue recognized in fiscal year 2014 was £122,000 of which £102,000 relates to gift cards sold during 2014.
b. The amount of revenue recognized in fiscal year 2014 was £122,000, of which £97,000 relates to gift cards sold during 2014.
c. The amount of revenue recognized in fiscal year 2014 was £132,000, of which £107,000 relates to gift cards sold during 2014.
d. The amount of revenue recognized in fiscal year 2014 was 132,000, of which £112,000 relates to gift cards sold during 2014.
e. The amount of revenue recognized in fiscal year 2014 was £120,000, of which £100,000 relates to gift cards sold during 2014.