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. What is the total value of gift certificates redeemed in 20X2?
1) $385,000
2) $385,000
3) $385,000
4) $385,000
