Plimpton Sales presents income statements for the first three months of this year. Revenues are $1,000,000 in January. S1,200,000 in February, and $1,400,000 in March, while expenses total S800,000 in January, $900,000 February, and $1,000,000 in March. Despite the positive net income, the controller believes Plimpton Sales needs to arrange short- tmfinacing of $300,000 to make payroll the next month. Which of the following slatements is MOST corecl? a. The controller must have made a mistake since the company's net income for the three months is $900,000.
b. The company's accounts receivable balance has increased and the accounts payable balance has decreased over the past three months.
c. The company's accounts receivable balance has decreased over the past three months.
d. The company's accounts payable balance has increased over the past three months

Circuittown commenced a gift card program in january 2018 and sold $12,150 of gift cards in january, $19,150 in february, and $18,100 in march of 2018 before discontinuing further gift card sales. during 2018, gift card redemptions were $7,850 for the january gift cards sold, $4,350 for the february cards, and $4,250 for the march cards. circuittown considers gift cards to be “broken” (not redeemable) 10 months after sale. required: 1. how much revenue will circuittown recognize with respect to january gift card sales during 2018? 2. prepare journal entries to record the sale of january gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration) of gift cards. 3. how much revenue will circuittown recognize with respect to march gift card sales during 2018? 4. what liability for deferred revenue associated with gift card sales would circuittown show as of december 31, 2018?