Question: CircuitTown commenced a gift card program in January 2016 and sold $10,000 of gift cards in January, $15,000 in February, and $16,000 in March of

CircuitTown commenced a gift card program in January 2016 and sold $10,000 of gift cards in January, $15,000 in February, and $16,000 in March of 2016 before discontinuing further gift card sales. During 2016, gift card redemptions were $6,000 for the January gift cards sold, $4,500 for the February cards, and $4,000 for the March cards. CircuitTown considers gift cards to be broken (not redeemable) 10 months after sale.

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

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?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

An income statement for Hamilton Corporation follows: Revenues from sales of products $ 360,000 Cost of goods sold: Beginning inventory $ 48,000 Purchases 228,000 Ending inventory (168,000 ) (108,000...

CircuitTown commenced a gift card program in January 2021 and sold $11,050 of gift cards in January, $18,050 in February, and $22,200 in March 2021 before discontinuing further gift card sales....

CircuitTown commenced a gift card program in January 2018 and sold $13,550 of gift cards in January, $15,200 in February, and $21,750 in March of 2018 before discontinuing further gift card sales....

CircuitTown commenced a gift card program in January 2018 and sold $13,150 of gift cards in January, $16,000 in February, and $17,400 in March of 2018 before discontinuing further gift card sales....

please answer all parts to this one question and be neat please. I will thumbs up CircuitTown commenced a gift card program in January 2024 and sold $10,000 of gift cards in January, $15,000 in...

PLEASE HELP ME WITH QUESTIONS 4 and 5. Thank you Sound Audio manufactures and selis audio equipment for automobiles. Engineers notified management in December 2024 of a circuit flaw in an amplifier...

I will give thumbs up for correct answers! CircuitTown commenced a gift card program in January 2021 and sold $12,700 of gift cards in January, $17,950 in February, and $21,450 in March 2021 before...

CircuitTown commenced a gift card program in January 2 0 2 4 and sold $ 1 0 , 5 5 0 of gift cards in January, $ 1 7 , 8 0 0 in February, and $ 1 7 , 2 0 0 in March 2 0 2 4 before discontinuing...

Complete this question by entering your answers in the tabs below. Reg 2 Req 1 and 3 and 4 Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales...

CircuitTown commenced a gift card program in January 2016 and sold $11,900 of gift cards in January, $19,450 in February, and $20,850 in March of 2016 before discontinuing further gift card sales....

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....

The sales manager of Flying Carpets, a carpet manufacturer and wholesaler, is analyzing the profitability of two of the company's customers. One customer, a boutique store, purchases small orders for...

Suppose that the demand curve for new automobiles is given by QA = 20 - 0.7PA - PG where QA and PA are the quantity (millions of vehicles) and average price (thousands of dollars per vehicle),...

Terrell is excited to begin his new position as a manager at the Cheesecake Factory. As a manager, what is Terrell's primary task? Group of answer choices Administering a new health insurance plan...

Prepare a journal entry for the purchase of office equipment on February 3 for $18,250, paying $3,650 cash and the remainder on account.

In Figure a sand grain is 3.00 cm from thin lens 1, on the central axis through the two symmetric lenses. The distance between focal point and lens is 4.00 cm for both lenses; the lenses are...

Prepare a journal entry for the purchase of office supplies on October 14 for $9,000, paying $1,800 cash and the remainder on account.

What must be the width of a one-dimensional infinite potential well if an electron trapped in it in the n = 3 state is to have an energy of 4.7eV?

The following circuit operates if and only if there is a path of functional devices from left to right. The probability that each device functions is as shown. Assume that the probability that a...

------------------------------------- At the beginning of its first year of operations, Bonita Limited has 4,900, $3 preferred shares and 48,000 common shares. Using the format shown below, allocate...

3. Keep a log of all the different channels (face to face, written, computer mediated, telephonic, others) you use to communicate during the course of one morning or afternoon. Do you regularly...

Would you want to be a virtual employee? Do you think there are any disadvantages of working virtually?

Give examples of the macroenvironment. How do they apply to the healthcare industry?