Question: Mars Department Stores, Inc. records $ 1 7 0 , 0 0 0 in cash sales of gift cards in year 1 . Customers redeemed

Mars Department Stores, Inc. records $170,000 in cash sales of gift cards in year 1. Customers redeemed $42,500 of the gift cards to purchase merchandise in year 1. The company estimates breakage as 12% and uses the proportional method to estimate breakage revenue. How much breakage revenue should be recorded at the end of year 1? Round your answer to the nearest dollar.

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