Moretti Department Store sells gift cards that expire three years from the date of purchase.During 2014,Moretti sold $50,000 of gift cards,of which $1,500 were redeemed during 2016.At the end of 2016,it is estimated that approximately $800 of the 2014 balance remains unused,and Moretti concludes that it will never be redeemed.Moretti sold another $55,000 of gift cards in 2015,of which $22,000 were redeemed in 2016,and $60,000 of gift cards in 2016,of which $40,000 were redeemed in 2016. Required: How much revenue with respect to gift cards should Moretti recognize in 2016?

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The Answer of Moretti Department Store sells gift cards that expire three years from the date of purchase.During 2014,Moretti sold $50,000 of gift cards,of which $1,500 were redeemed during 2016.At the end of 2016,it is estimated that approximately $800 of the 2014 balance remains unused,and Moretti concludes that it will never be redeemed.Moretti sold another $55,000 of gift cards in 2015,of which $22,000 were redeemed in 2016,and $60,000 of gift cards in 2016,of which $40,000 were redeemed in 2016. Required: How much revenue with respect to gift cards should Moretti recognize in 2016?

Moretti Department Store Sells Gift Cards That Expire Three Years