1) In December, customers purchased $3,000 of gift cards from Angela’s. (2) At December 31, gift cards totaling $1,900 remained unused. (3) Angela’s took a physical count of its inventory and determined the correct value of inventory should be $20,000. The unadjusted balance in the Inventory account was $20,450.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 5EA: On April 5, a customer returns 20 bicycles with a sales price of $250 per bike to Barrio Bikes. Each...
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The following transactions are for Angela’s Disc Golf Emporium:

(1) In December, customers purchased $3,000 of gift cards from Angela’s.
(2) At December 31, gift cards totaling $1,900 remained unused.
(3) Angela’s took a physical count of its inventory and determined the correct value of inventory should be $20,000. The unadjusted balance in the Inventory account was $20,450.


(a)

 
 
Prepare journal entries for the three transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.
Account Titles and Explanation
Debit
Credit
(1)
 
 
 
 
 
 
 
(2)
 
 
 
 
 
 
 
(3)
 
 
 
 
 
 
 
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