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Greeley [361]
2 years ago
12

Apple Inc. is the number one online music retailer through its iTunes music store. Apple sells iTunes gift cards in $15, $25, an

d $50 increments. Assume Apple sells $19.5 million in iTunes gift cards in November, and customers redeem $12.5 million of the gift cards in December.
1. Record journal entries for cash receipt and for revenue earned from redemption of gift cards
2. Ending balance in deferred revenue account
Business
1 answer:
denis23 [38]2 years ago
7 0

The ending balance in the unearned revenue account is $7 millions .

<h3>Record journal entries ?</h3>

Debit: Cash. $19.7m

Credit: Unearned Revenue $19.7m

Being sales of gift card for the month of December.

Debit: Unearned Revenue. $12.7m

Credit: Sales. $12.7m

Being actual gift card redeemed for the month if December.

Unearned Revenue a/c has a credit balance of $7m as unredeemed gift card. Its a liability to the company as they have the money but the cards are yet to be redeemed.

To learn more about journal entries refer

brainly.com/question/14285397

#SPJ4

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