Wilson Cafeteria Issues Gift Cards, Which Are Very Popular in the Small

Multiple Choice

Wilson Cafeteria issues gift cards, which are very popular in the small town where the restaurant is located. In a recent month, Wilson issued $4,000 in gift cards. Experience indicates that 80 percent of the cards will be redeemed before they expire. What is the entry to record the estimated gift card expense?

A)
$\begin{array}{ll}\text { Gift Card Expense } & 3,200 \\\text { Gift Card Payable } &\end{array}$
Expense for month
$(\$ 4000 \times 80 \%)$
B)
Gift Card Expense $\quad$ 4,000
Gift Card Payable $\quad$ 4,000
Expense for month
C)
$\begin{array} { l l } \text { Gift Card Payable } & 3,200 \\\text { Gift Card Expense } & 3,200 \\\text { Expense for month } & \\( \$ 4,000 \times 80 \% ) &\end{array}$
D)
$\begin{array} { l c } \text { Gift Card Payable } & 4,000 \\\text { Gift Card Expense } & 4,000 \\\text { Expense for month } &\end{array}$