Bull's Eye Department Stores, Inc. records $140,000 in gift card sales and receives cash in year...
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Bull's Eye Department Stores, Inc. records $140,000 in gift card sales and receives cash in year 1. Customers redeemed 10% of the gift cards to purchase merchandise in year 1. The company estimates breakage as 15% and uses the proportional method. How much breakage revenue should be recorded at the end of year 1? (Round any intermediary percentages two decimal places, X.XX%. Round your final answer to the nearest dollar.) OA. $21,000 OB. $2,470 OC. $14,000 OD. $2,100 Bull's Eye Department Stores, Inc. records $140,000 in gift card sales and receives cash in year 1. Customers redeemed 10% of the gift cards to purchase merchandise in year 1. The company estimates breakage as 15% and uses the proportional method. How much breakage revenue should be recorded at the end of year 1? (Round any intermediary percentages two decimal places, X.XX%. Round your final answer to the nearest dollar.) OA. $21,000 OB. $2,470 OC. $14,000 OD. $2,100
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