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Sample Resume : Runway Discount

Good Essays

Fact Runway discount is a private online retailed selling discounted high-end fashion. The company has a program aimed at helping increase sales and customer base. Runway provides existing customers with a $25 credit if the customer refers a friend to the Runway website and purchase from Runway. After purchase by new client, the existing client gets $25 applied to future purchase from Runway. Issue Will Runway’s idea increase sales? Is it important to determine how to address the referral credit in the income statement? Should we record the $25 Referral Credit on Runway’s Income Statement as a reduction of revenue? Does the Financial Accounting Standards Board’s ASC consider it as a reduction of revenue? Runway discount should record the $25 Referral Credit after the existing client redeems the credit? Conclusion Yes Analysis The idea by Runway Discount to implement Refer-a-friend Program is an indication that it is taking proper steps to increase its customer, which will in turn increase sales. The refer-a-fried program aims at providing incentives to the current customers who refer their friends. With this program, there are some additional procedures that the company should follow when it is recording the transactions involving the $25 referral credit. It is essential to address how to document the referral credit in the income statement. When considering the case at Runway Discount, there are several issues to consider in this aspect. Whether the consideration is

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