In Lizzie Shoes’ experience, gift cards that have not been redeemed within 12 months are not likely to beredeemed. Lizzie Shoes sold gift cards for $18,000 during August 2018. $4,000 of cards were redeemed inSeptember 2018, $3,000 in October, $2,500 in November, and $2,000 in December 2018. In 2019 an additional$1,000 of cards were redeemed in January and $500 in February. How much gift card revenue associated withthe August 2018 gift card sales would Lizzie get to recognize in 2018 and 2019?
In Lizzie Shoes’ experience, gift cards that have not been redeemed within 12 months are not likely to beredeemed. Lizzie Shoes sold gift cards for $18,000 during August 2018. $4,000 of cards were redeemed inSeptember 2018, $3,000 in October, $2,500 in November, and $2,000 in December 2018. In 2019 an additional$1,000 of cards were redeemed in January and $500 in February. How much gift card revenue associated withthe August 2018 gift card sales would Lizzie get to recognize in 2018 and 2019?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In Lizzie Shoes’ experience, gift cards that have not been redeemed within 12 months are not likely to be
redeemed. Lizzie Shoes sold gift cards for $18,000 during August 2018. $4,000 of cards were redeemed in
September 2018, $3,000 in October, $2,500 in November, and $2,000 in December 2018. In 2019 an additional
$1,000 of cards were redeemed in January and $500 in February. How much gift card revenue associated with
the August 2018 gift card sales would Lizzie get to recognize in 2018 and 2019?
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