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Accounting & Bookkeeping & Small Business Forum
Accounting, Bookkeeping, Marketing, and Small Business Resource
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| Posted: Wed Nov 10, 2004 1:01 pm Post subject: How to account for Promotions |
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How would you account for a promotion where the customer will receive a store gift card if they buy a certain dollar amount worth of goods?
And how would the expired gift cards be accounted for?
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Guest
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| Posted: Mon Nov 15, 2004 7:50 am Post subject: RE: How to account for Promotions |
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| If these gift cards are substantial in value, then you will probably want to track them as a payable, with the debit going to promotion expense. If they are less significant then, recognize the promotion expense when the gift cards are redeemed. If you use the first method, and the card is not redeemed then just reverse the entry when the card expires. |
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