Scrumptious Donuts sold $2,000 worth of gift certificates in December.As of December 31,$500 worth of the $2,000 gift certificates had been redeemed.All gift certificates sold use the Deferred Revenue account.The balance in the Deferred Revenue account as of December 31 is

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The total amount of gift certificates sold is $2,000 and $500 of that has been redeemed, leaving $1,500 still outstanding. Since all gift certificate sales use the Deferred Revenue account, the balance in the Deferred Revenue account as of December 31 would be the outstanding amount of $1,500. Therefore, the correct answer is D) $1,500.

Scrumptious Donuts Sold $2,000 Worth of Gift Certificates in December