In Lizzie Shoes’ experience, gift cards that have not been redeemed within 12 months are not likely to be redeemed. Lizzie Shoes sold gift cards for $18,000 during August of 2016. $4,000 of cards were redeemed in September of 2016, $3,000 in October, $2,500 in November, and $2,000 in December of 2016. In 2017 an additional $1,000 of cards were redeemed in January and $500 in February. How much gift card revenue associated with the August 2016 gift card sales would Lizzie get to recognize in 2016 and 2017?

Question
Asked Jan 27, 2020
87 views

In Lizzie Shoes’ experience, gift cards that have not been redeemed within 12 months are not likely to be redeemed. Lizzie Shoes sold gift cards for $18,000 during August of 2016. $4,000 of cards were redeemed in September of 2016, $3,000 in October, $2,500 in November, and $2,000 in December of 2016. In 2017 an additional $1,000 of cards were redeemed in January and $500 in February. How much gift card revenue associated with the August 2016 gift card sales would Lizzie get to recognize in 2016 and 2017?

check_circle

Expert Answer

Step 1

1. please see attached the journals that will be posted in year 2016  along with workings

Accounting homework question answer, step 1, image 1
fullscreen
Step 2

2. Attached are the journals to be posted in...

Accounting homework question answer, step 2, image 1
fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in
BusinessAccounting

Accounting Principles

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: On December 31, 2019, Escapee Company leased machinery from Terminator Corporation for an agreed-upo...

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of...

question_answer

Q: Describe the reporting of pension plans for a company with multiple plans, some of which are underfu...

A: Multiple pension plans: Companies maintain a single pension plan for their employees. But some compa...

question_answer

Q: On April 1, 2014, the KB Toy Company purchased equipment to be used in its manufacturing process. Th...

A: 1.

question_answer

Q: Latoya Company provides the following selected information related to its defined benefit pension pl...

A: 1. Compute pension expense and record journal entry for pension expense as shown below:

question_answer

Q: Bronson Distributors owes a supplier $100,000 on open account. The amount is payable in three months...

A: Liabilities Liabilities are referred to as the obligations of the business towards the creditors for...

question_answer

Q: Explain the difference between the retail inventory method using LIFO and the dollar-value LIFO reta...

A: LIFO: Under this inventory method, the units that are purchased last, are sold first. Thus, it start...

question_answer

Q: Using the information from BE19.2, assume this is the only difference between ­Oxford's pretax finan...

A: Prepare journal entry to record the income tax expense, deferred income taxes, and income taxes paya...

question_answer

Q: The book basis of depreciable assets for Erwin Co. is $900,000, and the tax basis is $700,000 at the...

A: Deferred tax liability: The deferred tax liability is the excess, over received, or received in adva...

question_answer

Q: Villa Company has experienced tough competition, leading it to seek concessions from its employees i...

A: Pension plan: Pension plan is the plan devised by corporations to pay the employees an income after ...