spa Inc. gathered the following information related to its gift card sales for 2020, it's first year

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spa Inc. gathered the following information related to its gift card sales for 2020, it's first year of selling gift cards:

sales of nonrefundable gift cards, 2020

$25,500

gift card redemptions, 2020

$18,360

spa Inc. estimates that 90% of the value of gift card sold in 2020 will be redeemed while 10% will remain unclaimed under the proportional method what would spot in cracking nice for gift cards breakage revenue in 2020?

pls show work

a. $825

b. $1725

c. $2550

d. $2040

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0132162302

1st edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

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Posted Date: Jan 31, 2021 04:17 PM

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spa Inc. gathered the following information related to its gift card sales for 2020, it's first year

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Expert Answer:

d 2040 Answrer eroportional method Breakage reenue is recognised on pro... View the full answer

Intermediate Accounting

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