On March 31, 2021, a company sells $1,200 of gift cards to customers. The gift cards expire one year from the date of sale. What entry should the company record on March 31, 2021? Multiple Choice Debit Cash, $1,200; credit Sales Revenue, $1,200. Debit Sales Revenue, $1,200; credit Cash, $1,200. Debit Cash, $1,200; credit Deferred Revenue, $1,200. No journal entry is necessary.

On March 31, 2021, a company sells $1,200 of gift cards to customers. The gift cards expire one year from the date of sale. What entry should the company record on March 31, 2021? Multiple Choice Debit Cash, $1,200; credit Sales Revenue, $1,200. Debit Sales Revenue, $1,200; credit Cash, $1,200. Debit Cash, $1,200; credit Deferred Revenue, $1,200. No journal entry is necessary.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4Q: American Signs allows customers to pay with their Jones credit card and cash. Jones charges American...

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