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ikadub [295]
3 years ago
11

In January, 2021, Summit Department Store sells a gift card for $50 and receives cash. In February, 2021, the customer comes bac

k and spends $20 of the gift card to purchase a water bottle. What would be the appropriate journal entry for the customer’s purchase of the water bottle in February?
Business
1 answer:
PtichkaEL [24]3 years ago
7 0

Answer:

Feb. 2021

  Dr Gift Card Liability         $20

     Cr Gift Card Revenue    $20

(to record revenue arisen from oustanding Gift Card Liability)

Explanation:

Under GAAP, the accounting for Gift Card is quite simple. When the gift card are sold, Gift Card Issuer receives Cash (Debit Cash) and assume the Liability (Cr Liability) to anyone owning the gift card for later providing of goods/services priced at the Cash amount that had been received.

It is not until Gift Card is redeemed that Gift Card Issuer is allowed to record revenue (Credit Revenue) as it is an actual point of time when the provide of goods/services takes place. Also at the same time, once the goods/services are provided, they Liability assumed earlier in time through Gift Card issuance will be discharged to the extent of the price of goods/services provided.

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W. Edwards Deming

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W. Edwards Deming

W. Edwards Deming who is a management consultant from America that believe in system theory that all organization has different components that works together to achieve a goal in the organization.

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You go to a local mechanic to get your tires changed. The tires cost $300. There is a 6% sales tax, but you get a 10% discount.
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Answer:

X= cost of the tires

t(x)= (.9*X+10)*1.06

If x = 300, then the costo is (.9*300 + 10) *1.06 = (270 + 10)* 1.06 = 280 * 1.06 = $296.80

If the tax is appplied first and then the discount is applied, your formula would be:

t(x) = (x+10)*1.06 - (-1*x)

If x is equal to $300, the cost is $310 * 1.06 - .1*300 = $328.60 - $30 = $298.60

you pay mor if the tax is applied first.

Your discounted price of .9*x stems from x - .10*x which becomes (1-.10)*x wich becomes .9*x

Your cost with tax stems from y + .06*x =(1+.06)*y = 1.06*y

Y is the amount of the cost that is taxed.

if the discuount is applied first, then y is equal to (.9*x + 10)

if the discount is applied after, then y is equal to (x+10).

The difference is the tas on the discount

Explanation:

7 0
4 years ago
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Explanation:

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A research group in Arizona recently conducted a survey among workers of a coal power plant to understand emotions and their hap
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The positively offset is one of the concept that helps in explaining the various types of organizational behavior terms of business administration.

According to the given question, the positively offset is one of the concept that best illustrating the given concept pf research group survey of the workers of the coal power plant organization for understanding their emotions.    

 Therefore, Option (E) is correct answer.

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