Journal entries for sales with giving free gift cards?
poppennysun asked:
companies do a promotion in mid-august, which is that custumers will get $20 gift card if they spend over $100.
companies do a promotion in mid-august, which is that custumers will get $20 gift card if they spend over $100.
questions:
1. what will be the journal entries for the sale?
2. what will be the journal entries for the redemtion of the gift card?
3. what about the expired or unused gift cards?
THANKS 4 UR HELP!
September 30th, 2009 at 3:45 am
I believe it would be:
1. Debit Cash/Sales, Credit Gift Card Liability
2. Debit Gift Card Liability, Credit Inventory or whatever the customer takes away of value.
3. Over time they may write off the portion of unused cards by Debiting the Gift Card Liability, and Crediting?? Unused Gift Card (not sure what that would be, not a liability..)