 |
Accounting & Bookkeeping & Small Business Forum
Accounting, Bookkeeping, Marketing, and Small Business Resource
|
| View previous topic :: View next topic |
| Author |
Message |
Guest
|
| Posted: Wed Nov 10, 2004 7:50 pm Post subject: Gift card |
|
|
If a gift card is given "for free" to a buyer who had to purchase goods of a specific $ value and it is only valid (the gift card) in that store.
What would you debit and what would u credit when the gif card is given for free? |
|
| Back to top |
|
Guest
|
| Posted: Mon Nov 15, 2004 7:59 am Post subject: RE: Gift card |
|
|
| If the gift cards are of a significant value, credit the current liability account, "Unredeemed Gift Cards", and debit "Promotion Expense". When it is redeemed you will credit "Sales", and debit "Unredeemed Gift Cards". |
|
| Back to top |
|
Guest
|
| Posted: Tue Mar 22, 2005 3:05 pm Post subject: RE: Gift card |
|
|
| Why would you credit a revenue account when you are not receiving cash? Also, do you already recognize the revenue from their purchase when it was made? What would be the entry if it was unredeemed? If you have any information of where we can justify recognizing revenue, please let me know. Thank you. |
|
| Back to top |
|
| |
|