Meadville Industries Sells Gift Certificates That Are Redeemable in Merchandise

question 55

Multiple Choice

Meadville Industries sells gift certificates that are redeemable in merchandise. During 2017, Meadville sold gift certificates for $88,000. Merchandise with the total price of $52,000 was redeemed during the year. For Meadville, the cost of the merchandise sold was $32,000. Meadville sold gift certificates for the first time in 2017. The journal entry recording the sale of the gift certificates will include:

• A)a debit to Certificate Liability for $88,000
• B)a debit to Unearned Revenue for $88,000
• C)a credit to Sales for $88,000
• D)a credit to Unearned Revenue for $88,000

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Definitions:

Human History

The recorded or studied past of the human species, encompassing historical events, cultures, advancements, and transformations through time.

Neandertals

An extinct species of human that was widely distributed in ice-age Europe between c. 120,000-35,000 years ago, coexisting with early Homo sapiens.

Gracile Australopithecines

One member of the genus Australopithecus possessing a more lightly built chewing apparatus; likely had a diet that included more meat than that of the robust australopithecines.

Human Ancestors

Prehistoric species and genera that are considered predecessors of modern humans in the evolutionary lineage.