Peterson Photoshop sold $1,000 in gift cards on a special promotion on October 15,2013, and sold $1,500 in gift cards on another special promotion on November 15, 2013. Of the cards sold in October, $100 were redeemed in October, $250 in November, and $300 in December. Of the cards sold in November, $150 were redeemed in November and $350 were redeemed in December. Peterson views the probability of redemption of a gift card as remote if the card has not been redeemed within two months. At 12/31/2013, Peterson would show an unearned revenue account for the gift cards with a balance of: A. $0.B.$1,00C. $1,35D. $1,500.

Respuesta :

Answer:

$1,000

Explanation:

November sales = $1,500

November redemption = $150

December redemption = $350

Unearned revenue account for the gift cards:

= November sales - November redemption - December redemption

= $1,500 - $150 - $350

= $1,000

Therefore,  the Peterson would show an unearned revenue account for the gift cards with a balance of $1,000.