On January 1, 2016, the First Month of the Fiscal

Essay

On January 1, 2016, the first month of the fiscal year, the Gift Certificates account had a credit balance of $9,000. During January, customers purchased an added $85,200 worth of gift certificates. As of January 31, 2016, $13,600 of certificates were unredeemed.
A. How will the adjustment gift certificates redeemed affect the income statement for the month ending January 31, 2016?
B. How will the adjustment gift certificates redeemed affect the balance sheet prepared at January 31, 2016?