The following transactions are for Angela's Disc Golf Emporium:
(1) In December, customers purchased $3,000 of gift cards (for goods) from Angela's.
(2) At December 31, gift cards totaling $1,900 remained unused.
(3) Angela's took a physical count of its inventory and determined the correct value of inventory should Required:
(a) Prepare journal entries for the three transactions.
(b) What is reported in the income statement as a result of items (1) and (2) above?
(c) What amount is reported as Inventory in the 12/31 balance sheet?
(d) How is the income statement affected by item (3)?

Question

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The Answer of The following transactions are for Angela's Disc Golf Emporium:
(1) In December, customers purchased $3,000 of gift cards (for goods) from Angela's.
(2) At December 31, gift cards totaling $1,900 remained unused.
(3) Angela's took a physical count of its inventory and determined the correct value of inventory should Required:
(a) Prepare journal entries for the three transactions.
(b) What is reported in the income statement as a result of items (1) and (2) above?
(c) What amount is reported as Inventory in the 12/31 balance sheet?
(d) How is the income statement affected by item (3)?

The Following Transactions Are for Angela's Disc Golf Emporium