Relax Spa Inc. regularly sells gift cards for beauty services. Based on past redemption rates it estimates
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Question:
Relax Spa Inc. regularly sells gift cards for beauty services. Based on past redemption rates it estimates that 18% of all gift cards are NOT used. The total value of outstanding gift cards is $10,000. A customer redeems $150 on a gift card. Which of the following partial entries would Relax make? Round to 2 decimal places.
a) cr. Revenue $182.93
b) cr. Revenue $150.00
c) cr. Contract Liability $150.00
d) cr. Contract Liability $182.93
Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
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