Question: You have just started a program of selling gift certificates at your store. In the first month, you sold $7,000 worth and customers redeemed $2,300

You have just started a program of selling gift certificates at your store. In the first month, you sold $7,000 worth and customers redeemed $2,300 of these certificates for merchandise. Your average gross profit percentage is 38%. What should you report as gift certificate revenue, and how much gross margin related to the gift certificates will appear in the income statement?

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The revenue should be 2300 The remaining 4700 of unredeemed gift certificates ... View full answer

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