Question: Gift Certificates On December 5, 2007 Super Circuit Store sold gift certificates totaling $4,000. By December 31, 2007 all but $750 worth of these certificates

Gift Certificates On December 5, 2007 Super Circuit Store sold gift certificates totaling $4,000. By December 31, 2007 all but $750 worth of these certificates had been redeemed for merchandise. Outstanding certificates were then redeemed by January 15, 2008.

Required
1. Prepare journal entries on Super Circuit Store’s books to reflect the preceding transactions.
2. How would the gift certificates be reported on Super Circuit’s balance sheet on December 31, 2007?

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