Ashley Stores, Inc., sells gift cards for use at its stores. The following data pertain to 20X1, 20X2, and 20X3, the company’s first three years of operation:
20×1 20×2 20×3
gift card sales 30,000 45,000 50,000
gift card usage 12,000 28,000 37,000
As of December 31, 20X1, Ashley estimates that 1.0% of its gift cards will never be redeemed. As of December 31, 20X2, Ashley has revised its estimate, and now believes 1.5% of all gift cards, including those issued in 20X1, will not be redeemed. As of December 31, 20X3, its estimate remains at 1.5%. Ashley is not required to remit unused gift card amounts to the state.
(For all requirements, do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
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