Georgia's Salon The salon sells $50,000 of gift cards in May 2012.These gift cards may be used anytime before their expiration on May 31,2013.
Refer to Georgia's Salon.Which of the following is the correct journal entry to record the sale of the gift cards?

Question

Quizplus · Accepted Answer

The correct journal entry to record the sale of gift cards is to credit the liability account Gift Cards Payable and debit Cash for the total amount of gift cards sold. Therefore, the correct choice is B where Gift Cards Payable is credited for $50,000 and Cash is debited for $50,000.

Georgia's Salon the Salon Sells $50,000 of Gift Cards in May