Question

In Lizzie Shoes’ experience, gift cards that have not been redeemed within 12 months are not likely to be redeemed. Lizzie Shoes sold gift cards for $18,000 during August 2021. $4,000 of cards were redeemed in September 2021, $3,000 in October, $2,500 in November, and $2,000 in December 2021. In 2022 an additional $1,000 of cards were redeemed in January and $500 in February. How much gift card revenue associated with the August 2021 gift card sales would Lizzie get to recognize in 2021 and 2022?

Answer 1

Answer:

Explanation:

In 2016, She should recognize 4000+3000+2500+2000=11500, because the gift cards in amount of $11500 were redeemed

In 2017, the remaining revenue should be recognized 18000-11500=6500