On December 31, 2021, what amount should be reported as unearned revenue? Regal Department Store sells gift certificates, redeemable for store merchandise and withno expiration date.The entity provided the following information pertaining to the gift certificate salesand redemptions:Unearned revenue on January 1, 20212021 sales750,0002,500,000375,0001,750,0002021 redemptions of prior year sales2021 redemptions of current year sales

Unearned revenues are those revenues which are received in advance by the business, but has not been…

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On December 31, 2021, what amount should be reported as unearned revenue?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On December 31, 2021, what amount should be reported as unearned revenue?

Regal Department Store sells gift certificates, redeemable for store merchandise and with
no expiration date.
The entity provided the following information pertaining to the gift certificate sales
and redemptions:
Unearned revenue on January 1, 2021
2021 sales
750,000
2,500,000
375,000
1,750,000
2021 redemptions of prior year sales
2021 redemptions of current year sales

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