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 $20 million in iTunes gift cards in December, and customers redeem $13 million of the gift cards.
Required:
1. Record the advance collection of $20 million for iTunes gift cards.
2. Record the revenue earned when $13 million in gift cards is redeemed.