Texas Department Stores, Inc. sold $50,000 in gift cards in 2021. Customers redeemed $12,000 of...
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Texas Department Stores, Inc. sold $50,000 in gift cards in 2021. Customers redeemed $12,000 of the gift cards during the year (\$38,000 unredeemed by end of 2021). The company estimates breakage to be 20% and uses the proportional method to estimate breakage revenue. How much breakage revenue should be recorded on December 31,2021
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