Deferred Revenue,which represents the company's obligation to honor gift cards previously issued to customers,totaled $6,600 at the beginning of the year and $9,000 at the end of the year.Customers purchased gift cards amounting to $50,400 during the year.What was the amount of gift cards redeemed by customers during the year?

Question

Quizplus · Accepted Answer

Ending Deferred Revenue = Beginning Deferred Revenue + Gift cards sold − Gift cards redeemed
Gift cards redeemed = Beginning Deferred Revenue + Gift cards sold − Ending Deferred Revenue
= $6,600 + $50,400 − $9,000 = $48,000

Deferred Revenue,which Represents the Company's Obligation to Honor Gift Cards