Accounting MCQ Accounting On March 31, 2021, a company sells $1,200 of gift cards to customers. The gift cards expire one year from the date of sale. What entry should the company record on March 31, 2021?

On March 31, 2021, a company sells $1,200 of gift cards to customers. The gift cards expire one year from the date of sale. What entry should the company record on March 31, 2021?

Naim 13:57 Accounting

On March 31, 2021, a company sells $1,200 of gift cards to customers. The gift cards expire one year from the date of sale. What entry should the company record on March 31, 2021?

A) Debit Cash, $1,200 credit Sales Revenue, $1,200.

B) Debit Sales Revenue, $1,200 credit Cash, $1,200.

C) Debit Cash, $1,200 credit Deferred Revenue, $1,200.

D) No journal entry is necessary.

Answer: C

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