You have just started a program of selling gift certificates at your store. In the first month,

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You have just started a program of selling gift certificates at your store. In the first month, you sold $7,000 worth and customers redeemed $2,300 of these certificates for merchandise. Your average gross profit percentage is 38%. What should you report as gift certificate revenue, and how much gross margin related to the gift certificates will appear in the income statement?

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Introduction to Financial Accounting

ISBN: 978-0133251036

11th edition

Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick

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