Schlegel Department Store sells gift certificates—redeemable for store merchandise—that expire one year after their issuance. Schlegel has the following information pertaining to its gift certificates sales and redemptions: Unredeemed certificates at 12/31/X1 $ 90,000 20X2 sales 400,000 20X2 redemptions of prior year sales 60,000 20X2 redemptions of current year sales 325,000