CircuitTown commenced a gift card program in January 2016 and sold $12,150 of gift cards in January, $19,150 in February, and $18,100 in March of 2016 before discontinuing further gift card sales During 2016, gift card redemptions were $7,850 for the January gift cards sold, $4,350 for the February cards, and $4,250 for the March cards CircuitTown considers gift cards to be broken (not redeemable) 10 months after sale Required 1 How much revenue will CircuitTown recognize with respect to January gift card sales during 2016 2 Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration) of gift cards 3 How much revenue will CircuitTown recognize with respect to March gift card sales during 2016 4 What liability for deferred revenue associated with gift card sales would CircuitTown show as of December 31, 2016

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Question: CircuitTown commenced a gift card program in January 2016 and sold $12,150 of gift cards in January, $19,150 in February, and $18,100 in March of

CircuitTown commenced a gift card program in January 2016 and sold $12,150 of gift cards in January, $19,150 in February, and $18,100 in March of 2016 before discontinuing further gift card sales. During 2016, gift card redemptions were $7,850 for the January gift cards sold, $4,350 for the February cards, and $4,250 for the March cards. CircuitTown considers gift cards to be broken (not redeemable) 10 months after sale.

Required:

How much revenue will CircuitTown recognize with respect to January gift card sales during 2016?

2.	Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration) of gift cards.

How much revenue will CircuitTown recognize with respect to March gift card sales during 2016?

4.	What liability for deferred revenue associated with gift card sales would CircuitTown show as of December 31, 2016?

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