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 $21 million in iTunes gift cards in December, and customers redeem $14 million of the gift cards.

Required:
1. Record the advance collection of $21 million for iTunes gift cards.
2. Record the revenue earned when $14 million in gift cards is redeemed.
3. What is the ending balance in the Unearned Revenue account?



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  • CreatedJuly 15, 2014
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