How do you account for a free gift card? Is a liability created? What journal entries would you make?
asdf a asked:
What journal entries would you make to document a free $10 gift card that was given as the result of a $50 cash purchase. I’m assuming a $10 liability is being created after the initial $50 transaction. Also, what FASB pronouncements are in existance that would back up your answer? Any help would be greatly appreciated.
What journal entries would you make to document a free $10 gift card that was given as the result of a $50 cash purchase. I’m assuming a $10 liability is being created after the initial $50 transaction. Also, what FASB pronouncements are in existance that would back up your answer? Any help would be greatly appreciated.

