as of december 31, the unadjusted balance in deferred revenue contains $5,600 for unredeemed gift cards. an analysis of the monthly sales indicates that $3,200 gift cards were redeemed during the month but not yet recorded. how will these transactions affect the adjustments at the end of the period?

Since the gift cards was redeemed during the month which means that Unearned Revenue will have to be decreased by the costs of gift cards that was redeemed during the month.

Calculated as:

Unearned Revenue=$5,600-$3,200

Unearned Revenue=$2,400 decrease

Since the gift cards was redeemed during the month which means that will have increased Sales revenue by the costs of of gift cards that was redeemed during the month.

Calculated as:

Sales revenue=$5,600+$3,200

Sales revenue=$8,800 Increase

Inconclusion These transaction will affect the adjustments at the end of the period by:

Decrease Unearned Revenue

Increase Sales revenue

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