D. Unearned gift certificates revenue
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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D. Unearned gift certificates revenue
Transcribed Image Text:Problem 3:
JUNGKOOK Company sells gift certificates redeemable only when merchandise is purchased. Upon
redemption, Jungkook recognizes the unearned revenue as realized. Information for the current year:
Unearned gift certificates revenue, January 1
250,000
Gift certificates sold
1,745,000
1,483,250
80,000
Gift certificates redeemed
Gift certificates which expired
Gross profit rate based on cost
25%
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