Question: In Lizzie Shoes experience gift cards that have not been
In Lizzie Shoes’ experience, gift cards that have not been redeemed within 12 months are not likely to be redeemed. Lizzie Shoes sold gift cards for $18,000 during August of 2011. $4,000 of cards were redeemed in September of 2011, $3,000 in October, $2,500 in November, and $2,000 in December of 2011. In 2012 an additional $1,000 of cards were redeemed in January and $500 in February. How much gift card revenue associated with the August 2011 gift card sales would Lizzie get to recognize in 2011 and 2012?
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