des and enter O for the amounts. Round present value factor calculations to 5 decimal places, eg 125124 and the final answer cimal places eg 58971) Date Account Titles and Explanation Debit (To record sales of cards redeemed) (To record cost of goods sold) (To record sales of cards redeemed) (To record cost of goods sold) (To record sales of cards redeemed) (To record cost of goods soid)
des and enter O for the amounts. Round present value factor calculations to 5 decimal places, eg 125124 and the final answer cimal places eg 58971) Date Account Titles and Explanation Debit (To record sales of cards redeemed) (To record cost of goods sold) (To record sales of cards redeemed) (To record cost of goods sold) (To record sales of cards redeemed) (To record cost of goods soid)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%

Transcribed Image Text:Prepare the 2020 journal entries related to the gift cards at February 28, March 31, April 30, and June 30. (Credit account titles
are automatically indented when the amount is entered. Do not indent manualy. If no entry is required, select "No entry" for the account
titles and enter O for the amounts. Round present value factor calcufations to 5 decimal places, eg. 125124 and the final answer to 0
decimal places eg. 58,971)
Date
Account Titles and Explanation
Debit
Cre
(To record sales of cards redeemed)
(To record cost of goods sold)
(To record sales of cards redeemed)
(To record cost of goods sold)
(To record sales of cards redeemed)
(To record cost of goods sold)
(To record sales of cards not redeemed)
>
>

Transcribed Image Text:Pharoah sells 100 nonrefundable $50 gift cards for 3D printer paper on February 28, 2020. The paper has a standalone selling
price of $50 (cost $36). The gift cards expiration date is June 30, 2020. Pharoah estimates that customers will not redeem 10%
of these gift cards. The pattern of redemption is as follows.
Redemption Total
March 31
30 %
April 30
75
June 30
90
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education