5 Award O out of 1000 points Show correct answer in Lizzie S

5. Award O out of 10.00 points Show correct answer in Lizzie Shoes\' experience, gift cards that have not been redeemed within 12 months are not likely to be redeemed Lizzie Shoes sold gft cards for $18,200 during August of 2016. $4,100 of cards were redeemed in September of 2016, $3,890 in October, $3,230 in November, and $2,560 in December of 2016. In 2017 an additional $1,380 of cards were redeemed in January and $925 in February How much gift card revenue associated with the August 2016 gift card sales would Lizzie get to recognize in 2016 and 2017? Year Revenue 2016 9,100 2017 9,100 eBook & Resources rences Worksheet Difticulty: 2 Medium

Solution

Solution: 2016: $13780;2017: $4,420

Explanation:

In 2016 Lizzie will recognize $13,780 (=4,100 + 3,890 + 3,230 + 2,560)

In 2016 Lizzie will recognize $4,420 (=$18,200 - $13,780) because either gift cards were redeemed (the $1,380 in Janauary and $925 in February) or because they are viewed as expired