Ask Question
17 July, 13:45

On October 1, 2021, a company sells $800 of gift cards to customers. The gift cards expire one year from the date of sale. By October 1, 2022, $750 of the gift cards have been redeemed and the sales recorded at the time of redemption. What entry, if any, should the company record on October 1, 2022?

A) Debit Sales Revenue, S50; credit Cash, S50.

B) Debit Cash, $750; credit Sales Revenue, $750.

C) Debit Deferred Revenue, S50; credit Sales Revenue, $50.

D) No journal entry is necessary.

+3
Answers (1)
  1. 17 July, 17:44
    0
    D) No journal entry is necessary

    Explanation:

    A company sells $800 of gift cards to customers on October 1, 2021, and

    The gift cards expires in one year from the date of sale., that is September 30,2021., All accounding entries related to the gift card should be entered with in the period of one year., so., On October 1, 2022., No journal entry is necessary
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On October 1, 2021, a company sells $800 of gift cards to customers. The gift cards expire one year from the date of sale. By October 1, ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers