Watermelon sells gift cards in $15, $25, and $50 increments. Assume Watermelon sells $19.1 million in iTunes gift cards in November, and customers redeem $12.1 million of the gift cards in December.Required:1. & 2. Record the necessary entries in the Journal Entry Worksheet below.3. What is the ending balance in the Deferred Revenue account?

This question seems to be related to accounting. Here's how you would record the necessary entries and calculate the ending balance in the Deferred Revenue account:

1. When Watermelon sells $19.1 million in gift cards in November, the journal entry would be:

   Debit: Cash (or Accounts Receivable if not immediately paid) $19.1 million Credit: Deferred Revenue$19.1 million

   This entry recognizes that Watermelon has received cash but has an obligation to provide goods or services in the future.

2. When customers redeem $12.1 million of the gift cards in December, the journal entry would be:

   Debit: Deferred Revenue $12.1 million Credit: Revenue$12.1 million

   This entry recognizes that Watermelon has fulfilled its obligation to provide goods or services.

3. The ending balance in the Deferred Revenue account would be the beginning balance minus any amounts recognized as revenue. If we assume that the beginning balance was zero and only these transactions occurred, the ending balance would be:

   Beginning balance: $19.1 million (from the gift card sales in November) Less: Amounts recognized as revenue:$12.1 million (from the gift card redemptions in December) Ending balance: $19.1 million -$12.1 million = $7 million

So, the ending balance in the Deferred Revenue account would be $7 million.