In January, 2021, Summit Department Store sells a gift card for $50 and receives cash. In February, 2021, the customer comes back and spends $20 of the gift card to purchase a water bottle. What would be the appropriate journal entry for the customer's purchase of the water bottle in February?
A) Debit Deferred Revenue, $50 credit Sales Revenue, $50.
B) Debit Deferred Revenue, $20 credit Sales Revenue, $20.
C) Debit Sales Revenue, $20 credit Deferred Revenue, $20.
D) No journal entry is necessary.
Answer: B
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