pls answer thanks q .10 During December 2023, Carla Vista Ltd. sells $22,500 of gift cards to customers. From reliable past experience, managementestimates that 7% of the gift cards sold will not be redeemed by customers. In January 2024, $2,100 of these cards is redeemed formerchandise with a cost of $1,575. In February 2024, a further $10,800 of these cards is redeemed for merchandise with a cost of$8,640. The company uses a perpetual inventory system and has a February 28 year end.Prepare the journal entry needed for December 2023. (Credit account titles are automatically indented when the amount isentered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entrybefore credit entry.)Your answer is correct.(b)DateDecember, 2023List of AccountsDateAccount Titles and ExplanationeTextbook and MediaCashnuary, 2024Contract Asset/LiabilityYour answer is partially correct.nuary, 2024Prepare the journal entry needed for the January 2024 redemptions. (Credit account titles are automatically indented when theamount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.Round answers to O decimal places, e.g. 5,275. List all debit entries before credit entries.)Account Titles and ExplanationContract Asset/LiabilitySales Revenue(To record sales)Cost of Goods SoldDebitInventory22500DebitCredit1575Attempts: 1 of 3 used2250CreditME1575

Calculation of Sales Revenue. Sales Revenue = $2100/(100%-7%) = $2,258 Notes:- Dear student as…

During December 2023, Carla Vista Ltd. sells $22,500 of gift cards to customers. From reliable past experience, management estimates that 7% of the gift cards sold will not be redeemed by customers. In January 2024, $2,100 of these cards is redeemed for merchandise with a cost of $1,575. In February 2024, a further $10,800 of these cards is redeemed for merchandise with a cost of $8,640. The company uses a perpetual inventory system and has a February 28 year end.

During December 2023, Carla Vista Ltd. sells $22,500 of gift cards to customers. From reliable past experience, management estimates that 7% of the gift cards sold will not be redeemed by customers. In January 2024, $2,100 of these cards is redeemed for merchandise with a cost of $1,575. In February 2024, a further $10,800 of these cards is redeemed for merchandise with a cost of $8,640. The company uses a perpetual inventory system and has a February 28 year end.

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 14E: On January 5, 2019, ShoeKing Corp. sells for cash 500 pairs of volleyball shoes to FootAction, a...

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