Circuit Town commenced a gift card program in January 2024 and sold $13,150 of gift cards in January, $16,000 in February, and $17,400 in March 2024 before discontinuing further gift card sales. During 2024, 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. Circuit Town 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 2024?
Circuit Town commenced a gift card program in January 2024 and sold $13,150 of gift cards in January, $16,000 in February, and $17,400 in March 2024 before discontinuing further gift card sales. During 2024, 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. Circuit Town 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 2024?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 18E: On December 1, 2019, AwakcAllNight Inc. sells 5,000 super caffeinated candy bars to Campus Grocers....
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![Circuit Town commenced a gift card program in January 2024 and sold $13,150 of gift cards in January, $16,000 in February, and
$17,400 in March 2024 before discontinuing further gift card sales. During 2024, 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 2024?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F083932f6-e7b4-4ab8-ba3e-172a4d23dad0%2F963871e3-e50a-48b7-984c-b5d659f9988d%2F80z74gq_processed.png&w=3840&q=75)
Transcribed Image Text:Circuit Town commenced a gift card program in January 2024 and sold $13,150 of gift cards in January, $16,000 in February, and
$17,400 in March 2024 before discontinuing further gift card sales. During 2024, 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 2024?
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