Cathy company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Cathy company recognizes the unearned revenue as realized. Information for the current year: Unearned revenue, January 1 780,000 Gift certificates sold 2,700,000 Gift certificates redeemed 2,340,000 Gift certificates unredeemed for a long time 120,000 Cost of goods sold 60% What amount should be reported as unearned revenue at year end?
Cathy company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Cathy company recognizes the unearned revenue as realized. Information for the current year: Unearned revenue, January 1 780,000 Gift certificates sold 2,700,000 Gift certificates redeemed 2,340,000 Gift certificates unredeemed for a long time 120,000 Cost of goods sold 60% What amount should be reported as unearned revenue at year end?
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 8PA: Serene Company purchases fountains for its inventory from Kirkland Inc. The following transactions...
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12. Cathy company sells gift certificates redeemable only when merchandise is purchased. Upon redemption, Cathy company recognizes the unearned revenue as realized. Information for the current year:
Unearned revenue, January 1 780,000
Gift certificates sold 2,700,000
Gift certificates redeemed 2,340,000
Gift certificates unredeemed for a long time 120,000
Cost of goods sold 60%
What amount should be reported as unearned revenue at year end?
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