Chapter 13, Problem 13CYBK

For number four, record a journal entry for December 1-31 to record redemption and expected breakage revenue. The account titles in the journal entry are: DR. Unearned Gift Card Rvenue and Credit Sales Revenue and Sales Revenue (breakage), based an the information provided below, determine the amounts for each. Information: 1. On December 5, the store receive $550 from the Selig Players as a deposit to be returned after certain furniture to be used in stage production was returned on January 15. 2. During December, cash sales totaled $810,600, which includes the 5% sales tax that must be remitted to the state by the fifteenth day of the following month. 3. On December 10, the store purchased for cash three delivery trucks for $121,700. The trucks were purchased in a state that applies a 5% sales tax. 4. The store sold 27 gift cards for $100 per card. At year-end, 22 of the gift cards are redeemed. Metlock expects three of the cards to expire unused.

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Financial Accounting