Bull'sEye sells gift cards redeemable for Bull'sEye products either in-store or online. During 2021, BulfsEye sold $1,500,000 of gift cards, and $1.300,000 of the gift cards were redeemed for products. As of December 31, 2021, $140,000 of the remaining gift cards had passed the date at which Bull'sEye concludes that the cards will never be redeemed. How much gift card revenue should Bull'sEye recognize in 2021? Multiple Choice $1.440,000 O $1.300,000 $1,360,000 $1,500,000
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- GoodBuy sells gift cards redeemable for GoodBuy products either in store or online. During 2021, GoodBuy sold $1,000,000 of gift cards, and $840,000 of the gift cards were redeemed for products. As of December 31, 2021, $30,000 of the remaining gift cards had passed the date at which GoodBuy concludes that the cards will never be redeemed. How much gift card revenue should GoodBuy recognize in 2021?GoodBuy sells gift cards redeemable for GoodBuy products either in store or online. During 2018, GoodBuysold $1,000,000 of gift cards, and $840,000 of the gift cards were redeemed for products. As of December 31,2018, $30,000 of the remaining gift cards had passed the date at which GoodBuy concludes that the cards willnever be redeemed. How much gift card revenue should GoodBuy recognize in 2018?MOA sells gift cards that are redeemable only at its stores. The company's policy is to record the redemption amount as realized. MOA sold P1,800,000 worth of gift certificates in 2019 and redeemed P1,560,000 worth of gift certificates. The value of outstanding gift certificates as of January 1, 2019 is P520,000. The company's gross profit margin is 40%. What is the obligation for outstanding gift cards at the end of the fiscal year on December 31, 2019?
- 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 $19,150 during August 2021. $3,400 of cards were redeemed in September 2021, $3,610 in October, $2,750 in November, and $2,670 in December 2021. In 2022 an additional $1,850 of cards were redeemed in January and $535 in February.How much gift card revenue associated with the August 2021 gift card sales would Lizzie get to recognize in 2021 and 2022?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 $19,500 during August 2021. $5,000 of cards were redeemed in September 2021, $3,390 in October, $3,080 in November, and $2,380 in December 2021. In 2022 an additional $1,250 of cards were redeemed in January and $680 in February. How much gift card revenue associated with the August 2021 gift card sales would Lizzie get to recognize in 2021 and 2022?ABC Company, a grocery retailer, operates a customer loyalty program. The entity grants program members loyalty points when they spend a specified amount on groceries. Program members can redeem the points for further groceries. The points have no expiry date. During 2019, the sales amounted to P7,000,000 and the entity have granted 10,000 points. Management expects that only 80% of the points will be redeemed. The cost of each loyalty point is P100. As of December 31, 2019, 4,800 points have already been redeemed. In 2020, the management revised its expectations to 90% of the points will be redeemed. As of December 31, 2020, the entity redeemed 2,400 points. What amount should be reported as revenue earned from loyalty points in 2020?
- 58In Lizzie Shoes’ experience, gift cards that have not been redeemed within 12 months are not likely to beredeemed. Lizzie Shoes sold gift cards for $18,000 during August 2018. $4,000 of cards were redeemed inSeptember 2018, $3,000 in October, $2,500 in November, and $2,000 in December 2018. In 2019 an additional$1,000 of cards were redeemed in January and $500 in February. How much gift card revenue associated withthe August 2018 gift card sales would Lizzie get to recognize in 2018 and 2019?CircuitTown commenced a gift card program in January 2021 and sold $10,000 of gift cards in January, $15,000 in February, and $16,000 in March 2021 before discontinuing further gift card sales. During 2021, gift card redemptions were $6,000 for the January gift cards sold, $4,500 for the February cards, and $4,000 for the March cards. CircuitTown considers gift cards to be “broken” (not redeemable) 10 months after sale. Required:1. How much revenue will CircuitTown recognize with respect to January gift card sales during 2021?2. Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration) of gift cards.3. How much revenue will CircuitTown recognize with respect to March gift card sales during 2021?4. What liability for deferred revenue associated with gift card sales would CircuitTown show as of December 31, 2021?
- CircuitTown commenced a gift card program in January 2021 and sold $13,150 of gift cards in January, $16,000O in February, and $17,400 in March 2021 before discontinuing further gift card sales. During 2021, gift card redemptions were $7,800 for the January gift cards sold, $6,300 for the February cards, and $4,800 for the March cards. CircuitTown considers gift cards to be “broken" (not redeemable) 10 months after sale. Required: 1. How much revenue will CircuitTown recognize with respect to January gift card sales during 2021? 2. Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration) of gift cards. 3. How much revenue will CircuitTown recognize with respect to March gift card sales during 2021? 4. What liability for deferred revenue associated with gift card sales would CircuitTown show as of December 31, 2021? Complete this question by entering your answers in the tabs below. Req 2 Req 1 and 3 and 4…Cullumber Bakery began selling gift cards in 2025. Based on industry norms, they expect that 40% of the gift cards will not be redeemed. In 2025, the bakery sold gift cards with a value of $3200. During that period, gift cards with a value of $800 were redeemed. The amount of revenue that Cullumber will recognize in 2025 with regard to the gift cards is $1333 $800 $3200 $1120During February 2020, Buffalo Massage Ltd. sells $12,000 of gift cards for Valentine's Day gifts. From reliable past experience, management estimates that 10% of the gift cards sold will not be redeemed. By the end of February, $3,000 was redeemed by customers. Prepare the journal entries for Buffalo Massage for February 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)