How should the sale of gift certificates be recorded in the general ledger? Provide an example.
How should the sale of gift certificates be recorded in the general ledger? Provide an example.
Homework Answers
Answer. Journal Entry for sale of gift certificates is as follows:
Cash A/c
To Gift Certificates Liability
For Example: A retailer sold a Gift card or Gift Certificate for cash of $5000 to a customer, it shall be recorded as follows:
| Particulars | Debit($) | Credit($) |
| Cash A/c | 5000 | |
| To Gift Certificates Liability | 5000 |
Cash is debited as it is received by the customer there and then, Gift Certificate is a liability as it is redeemable by the customer later on. Therefore, revenue is recorded when it is presented to the retailer later on.
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How should the sale of gift certificates be recorded in
the general ledger? Provide an example.
Which one is for gift certificates? Bavarian Bar and Grill opened for business in November 2018....
Which one is for gift
certificates?
Bavarian Bar and Grill opened for business in November 2018. During its first two months of operation, the restaurant sold gift certificates in various amounts totaling $5,200, mostly as Christmas presents. They are redeemable for meals within two years of the purchase date, although experience within the industry indicates that 80% of gift certificates are redeemed within one year. Certificates totaling $1,300 were presented for redemption during 2018 for meals having a total price...
The sale of gift certificates/cards by a corporation requires a O Credit to Service Revenue O...
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Ivanhoe Inc.’s general ledger at April 30, 2021, included the following: Cash $5,000; Supplies $300; Equipment $20,000; Accounts Payable $2,100; Deferred Revenue (from gift certificates) $1,200; Bank Loan Payable $10,000; Common Shares $5,000; and Retained Earnings $7,000. The following transactions occurred during May: May 1 Paid rent for the month of May, $1,200. 4 Paid $1,200 of the account payable outstanding at April 30. 7 Issued gift certificates for future services for $1,500 cash. 15 Received $2,100 from customers for...
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(b) i) Perfect Plumbing uses the following tables in MYOB to keep their general ledger up...
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Which one is for gift
certificates?
Bavarian Bar and Grill opened for business in November 2018. During its first two months of operation, the restaurant sold gift certificates in various amounts totaling $5,200, mostly as Christmas presents. They are redeemable for meals within two years of the purchase date, although experience within the industry indicates that 80% of gift certificates are redeemed within one year. Certificates totaling $1,300 were presented for redemption during 2018 for meals having a total price...
The sale of gift certificates/cards by a corporation requires a O Credit to Service Revenue O Credit to Deferred Revenue O Credit to Cash
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Esplain how a sale would be recorded with a discount on the seller's books example. (two journals). Give an
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(b) i) Perfect Plumbing uses the following tables in MYOB to keep their general ledger up to date. Using these tables explain how a credit sale for $10,000 to a customer (goods cost $8,000) would be recorded and other tables updated in MYOB (assume no GST You will need to provide the journal entries and how the tables would be updated. Relstionships Customer uppleSales Sales Invoice Number Customer Number Sales Order Number Date Dcription Price Lj RelationshipsV:コCustomerVr supplierV_ InventoryV■ SaleNm...
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