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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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Answer:

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This fund often times is used in financing civic projects, facilities owned by the city concerned and the likes.

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3 years ago
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Answer:

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Explanation:

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2 years ago
Anne Mullens is the bookkeeper for DWG Refrigeration Repair. One afternoon while she was preparing the bank deposit, a customer
vesna_86 [32]

Answer:

Anne Mullens committed embezzlement.

Explanation:

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One of the conditions for embezzlement is an existence of a fiduciary (trust) relationship between parties.

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7 0
3 years ago
El Toro Corporation declared a common stock distribution to all shareholders of record on June 30, 20X3. Shareholders will recei
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Answer:

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Answer:

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