[Solved] Moretti Department Store Sells Gift Cards That Expire Three Years

Question 289
Essay
Question 289

Moretti Department Store sells gift cards that expire three years from the date of purchase.During 2014,Moretti sold $50,000 of gift cards,of which $1,500 were redeemed during 2016.At the end of 2016,it is estimated that approximately $800 of the 2014 balance remains unused,and Moretti concludes that it will never be redeemed.Moretti sold another $55,000 of gift cards in 2015,of which $22,000 were redeemed in 2016,and $60,000 of gift cards in 2016,of which $40,000 were redeemed in 2016. Required: How much revenue with respect to gift cards should Moretti recognize in 2016?

10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions in 300k quizzes.

Business

Explore our library and get Accounting Homework Help with various study sets and a huge amount of quizzes and questions

Upload material to get free access

Upload Now Upload Now
Upload Now

Invite a friend and get free access

Upload NowInvite a friend
Invite a friend

Subscribe and get an instant access

See our plansSee our plans
See our plans