Ayayai Taco Palace sells 240 gift cards at $40 per gift card and 120 of the gift will have 10% breakage on its gift cards. Prepare the entry for the gift card redemption and the expected breakage for the gift cards in the current year. (Ignore Cost of Goods Sold.) (If no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries. Round intermediate calculations to 4 decimal places, eg. 0.2456 and final answers to 0 decimal places, e.g. 5,125.) Account Titles and Explanation Unearned Gift Card Revenue Sales Revenue Sales Revenue (Breakage) Debit Credit 4800 960

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Ayayai Taco Palace sells 240 gift cards at $40 per gift card and 120 of the gift cards are redeemed by year-end. Ayayai estimates that it
will have 10% breakage on its gift cards. Prepare the entry for the gift card redemption and the expected breakage for the gift cards in
the current year. (Ignore Cost of Goods Sold.) (If no entry is required, select "No Entry" for the account titles and enter O for the amounts.
Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.
Round intermediate calculations to 4 decimal places, e.g. 0.2456 and final answers to O decimal places, e.g. 5,125.)
Account Titles and Explanation
Unearned Gift Card Revenue
Sales Revenue
Sales Revenue (Breakage)
Debit
Credit
4800
960
Transcribed Image Text:Ayayai Taco Palace sells 240 gift cards at $40 per gift card and 120 of the gift cards are redeemed by year-end. Ayayai estimates that it will have 10% breakage on its gift cards. Prepare the entry for the gift card redemption and the expected breakage for the gift cards in the current year. (Ignore Cost of Goods Sold.) (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries. Round intermediate calculations to 4 decimal places, e.g. 0.2456 and final answers to O decimal places, e.g. 5,125.) Account Titles and Explanation Unearned Gift Card Revenue Sales Revenue Sales Revenue (Breakage) Debit Credit 4800 960
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