pages books inc pages operates a national chain of book stores in canada pages offers gift cards for sale for customers who would like to give a gift

Required:
a. For the year ended December 31, 2017, prepare all journal entries (transactional and adjusting) Pages must make.
b. How would the unused gift cards be reported in Pages’ financial statements?
c. What effect does the sale of gift cards have on Pages’ current ratio? What impact does using a gift card have on the current ratio?
d. Why is the sale of a gift card not considered revenue for Pages?