Question: CircuitTown commenced a gift card program in January 2016 and sold $12,300 of gift cards in January, $18,250 in February, and $19,900 in March of

CircuitTown commenced a gift card program in January 2016 and sold $12,300 of gift cards in January, $18,250 in February, and $19,900 in March of 2016 before discontinuing further gift card sales. During 2016, gift card redemptions were $6,850 for the January gift cards sold, $5,750 for the February cards, and $3,900 for the March cards. CircuitTown considers gift cards to be broken (not redeemable) 10 months after sale. Required:

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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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