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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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.)
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No.
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Account Titles and Explanation
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Debit
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Credit
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(1)
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(2)
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(3)
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