Wildhorse Taco Palace sells 240 gift cards at $40 per gift card and 120 of the...

 

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Wildhorse Taco Palace sells 240 gift cards at $40 per gift card and 120 of the gift cards are redeemed by year-end. Wildhorse estimates that it will have 10% breakage on its gift cards. Prepare the entry for the gift card redemption and the expected breakage for the gift cards in the current year. (Ignore Cost of Goods Sold.) (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries. Round intermediate calculations to 4 decimal places, e.g. 0.2456 and final answers to O decimal places, e.g. 5,125.) Account Titles and Explanation Unearned Gift Card Revenue Inventory Sales Revenue Debit 5280 Credit 480 4800 Wildhorse Taco Palace sells 240 gift cards at $40 per gift card and 120 of the gift cards are redeemed by year-end. Wildhorse estimates that it will have 10% breakage on its gift cards. Prepare the entry for the gift card redemption and the expected breakage for the gift cards in the current year. (Ignore Cost of Goods Sold.) (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries. Round intermediate calculations to 4 decimal places, e.g. 0.2456 and final answers to O decimal places, e.g. 5,125.) Account Titles and Explanation Unearned Gift Card Revenue Inventory Sales Revenue Debit 5280 Credit 480 4800