Use the Following Information for Questions

Multiple Choice

Use the following information for questions:
Anna's Day Spa sells $25,000 worth of gift certificates in November and December.25% of the gift certificates are redeemed in December prior to the December 31 year end.
-The required year end adjusting entry is:

A) Dr.Revenues $6,250, Cr.Deferred gift card revenues $6,250
B) Dr.Revenues $18,750, Cr.Deferred gift card revenues $18,750
C) Dr.Deferred gift card revenues $6,250, Cr.Revenues $6,250
D) Dr.Gift card revenues $18,750, Cr.Revenues $18,750