For example, if a gift card is purchased in December and used in January, would the sale of merchandise be accounted for in December of January sales?
2007-01-10 08:51:30 · 6 answers · asked by gpapayia 2 in Business & Finance ➔ Other - Business & Finance
Great question.
In December it is not a sale. Over 35% of Gift cards go unclaimed.
In December it is treated as Deferred income(liability) from the store.
In January it is treated as a sale when the customer redeems the card.
2007-01-10 08:56:06 · answer #1 · answered by John B 2 · 0⤊ 0⤋
That would depend on their accounting method. I would think that the sale of a gift card is like a deposit. There would be no income at the time of sale. It would be deposits owed. When the purchase of an item is made then the money would be transferred from deposits owed to sales.
2007-01-10 16:56:59 · answer #2 · answered by Barkley Hound 7 · 0⤊ 0⤋
January. You record the sale when it is used. In the meantime, it becomes a liability on the books.
2007-01-10 16:55:01 · answer #3 · answered by jseah114 6 · 0⤊ 0⤋
january
Because in december it's not a sale it's a liability, they owe you X dollars woth of stuff.
2007-01-10 16:56:50 · answer #4 · answered by Economics Guy 3 · 0⤊ 0⤋
I believe that for accounting purposes it's when the card is USED not bought.
2007-01-10 16:55:15 · answer #5 · answered by ckm1956 7 · 0⤊ 0⤋
i think it is when the card is used not purchased
2007-01-10 17:22:40 · answer #6 · answered by shorty 6 · 0⤊ 0⤋