Peterson Photoshop sold $1,100 in gift cards on special promotion on October 15, 2016, and sold $1,650 in gift cards on another special promotion on November 15, 2016. Of the cards sold in October, $110 were redeemed in October, $275 in November, and $330 in December. Of the cards sold in November, $165 were redeemed in November and $385 were redeemed in December. Peterson views the probability of redemption of a gift card as remote if the card has not been redeemed within two months. On 12/31/2016, Peterson would show a deferred revenue account for the gift cards with a balance of: A. $1,650 B. $0 C. $1,100 D. $1,485

Financial Reporting, Financial Statement Analysis and Valuation
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ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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Chapter9: Operating Activities
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Financial Accounting Question please answer

Peterson Photoshop sold $1,100 in gift cards on special promotion on
October 15, 2016, and sold $1,650 in gift cards on another special
promotion on November 15, 2016. Of the cards sold in October, $110
were redeemed in October, $275 in November, and $330 in December.
Of the cards sold in November, $165 were redeemed in November and
$385 were redeemed in December. Peterson views the probability of
redemption of a gift card as remote if the card has not been redeemed
within two months.
On 12/31/2016, Peterson would show a deferred revenue account for the
gift cards with a balance of:
A. $1,650
B. $0
C. $1,100
D. $1,485
Transcribed Image Text:Peterson Photoshop sold $1,100 in gift cards on special promotion on October 15, 2016, and sold $1,650 in gift cards on another special promotion on November 15, 2016. Of the cards sold in October, $110 were redeemed in October, $275 in November, and $330 in December. Of the cards sold in November, $165 were redeemed in November and $385 were redeemed in December. Peterson views the probability of redemption of a gift card as remote if the card has not been redeemed within two months. On 12/31/2016, Peterson would show a deferred revenue account for the gift cards with a balance of: A. $1,650 B. $0 C. $1,100 D. $1,485
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