Multiple Choice
Meadville Industries sells gift certificates that are redeemable in merchandise. During 2017, Meadville sold gift certificates for $88,000. Merchandise with the total price of $52,000 was redeemed during the year. For Meadville, the cost of the merchandise sold was $32,000. Meadville sold gift certificates for the first time in 2017. The journal entry recording the sale of the gift certificates will include:
A) a debit to Certificate Liability for $88,000
B) a debit to Unearned Revenue for $88,000
C) a credit to Sales for $88,000
D) a credit to Unearned Revenue for $88,000
Correct Answer:
Verified
Correct Answer:
Verified
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