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Bull's Eye Department Stores, Inc

Question 31

Multiple Choice

Bull's Eye Department Stores, Inc. records $200,000 in gift card sales and receives cash in year 1. Customers redeemed 10% of the gift cards to purchase merchandise in year 2. Which of the following would be included in the summary journal entry to reflect the year 2 redemption transactions?


A) debit Unearned Revenue $20,000
B) credit Unearned Revenue $20,000
C) debit Sales Revenue $180,000
D) credit Sales Revenue $180,000

Correct Answer:

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