on january 22, bremerton golf course sells a gift card for $50 and receives cash. what journal entry should…
on january 22, bremerton golf course sells a gift card for $50 and receives cash. what journal entry should the company make to record this transaction? multiple choice account debit credit cash 50 deferred revenue 50 account debit credit cash 50 sales revenue 50 account debit credit sales revenue 50 cash 50 no journal entry is required
Answer
Brief Explanations:
When a company sells a gift - card and receives cash, it has an obligation to provide goods or services in the future. Cash is received, so the Cash account is debited for $50. Since the revenue is not yet earned (the customer has not used the gift - card to purchase goods or services), it is recorded as Deferred Revenue (a liability account), which is credited for $50.
Answer:
| Account | Debit | Credit |
|---|---|---|
| Cash | 50 | |
| Deferred Revenue | 50 |