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8_murik_8 [283]
3 years ago
7

Peterson Photoshop sold $1,300 in gift cards on a special promotion on October 15, 2021, and sold $1,950 in gift cards on anothe

r special promotion on November 15, 2021. Of the cards sold in October, $130 were redeemed in October, $325 in November, and $390 in December. Of the gift cards sold in November, $195 were redeemed in November and $455 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. At 12/31/2021, Peterson would show a deferred revenue account for the gift cards with a balance of:
Business
1 answer:
Anastaziya [24]3 years ago
4 0

Answer:

$1,300

Explanation:

Given that,

On November 15, 2021

sold gift cards = $1,950

Of the gift cards sold in November,

Redeemed in November = $195

Redeemed in December = $455

Therefore, the deferred revenue is as follows

= November sales - Redemptions

=  November sales - (Redeemed in November + Redeemed in December)

= $1,950 - ($195 + $455)

= $1,950 - $650

= $1,300

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