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Name: Disclosure Note 2 discusses Target’s accounting for gift card sales. D
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Description: Disclosure Note 2 discusses Target’s accounting for gift card sales. Does Targetrecognize revenue when it sells a gift card to a customer? If not, when does itrecognize revenue? Explain.

Business

Accounting

Disclosure Note 2 discusses Target’s accounting for gift card sales. Does Targetrecognize revenue when it sells a gift card to a customer? If not, when does itrecognize revenue? Explain.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 4MC: If a customer purchases merchandise on credit and returns the defective merchandise before payment,...

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Which two accounts are used to recognize shipping charges for a buyer, assuming the buyer purchases with cash and the terms are FOB Shipping Point? A. delivery expense, cash B. merchandise inventory, cash C. merchandise inventory, accounts payable D. The buyer does not record anything for shipping since it is FOB Shipping Point.
If a customer pays with a credit card and the service has been provided, which of the following accounts will be used to record the sales entry for this transaction? A. Cost of Goods Sold, Merchandise Inventory, Sales Revenue B. Sales Revenue, Credit Card Expense, Accounts Receivable C. Accounts Receivable, Merchandise Inventory, Credit Card Expense D. Cost of Goods Sold, Credit Card Expense, Sales Revenue
If a customer purchases merchandise on credit and returns the defective merchandise before payment, what accounts would recognize this transaction? A. sales discount, cash B. sales returns and allowances, cash C. accounts receivable, sales discount D. accounts receivable, sales returns and allowances
When does a company recognize revenue for a sale of a gift card?
Accounting for E-commerce Transactions: In e-commerce accounting, what is the appropriate treatment for recognizing revenue from the sale of goods when using the accrual basis? A. Recognize revenue when cash is received from customers. B. Recognize revenue when goods are shipped or services are provided, and the customer is obligated to pay. C. Recognize revenue only when customers make the payment through credit cards. D. Recognize revenue at the end of the financial year for all completed transactions
Using accrual accounting, what journal entry will Almost the Best Buy record when a customer purchases a gift card? Group of answer choices A. Debit Cash; Credit Unearned Revenue B. Debit Unearned Revenue; Credit Cash C. Debit Cash; Credit Sales Revenue D. Debit Accounts Receivable; Credit Cash
When should revenue from the sale of merchandise normally be recognized? A)When the customer takes possession of the merchandise. B)When the customer takes possession of the merchandise, if sold for cash, or when payment is received, if sold on credit. C)Either on the date the customer takes possession of the merchandise or on the date on which the customer pays. D)When the customer pays for the merchandise.
When should revenue from the sale of merchandise normally be recognized? (Assume the company reports using ASPE.) a.When the customer takes possession of the merchandise, if sold for cash, or when payment is received, if sold on credit. b.When the customer pays for the merchandise. c.Either on the date the customer takes possession of the merchandise or on the date on which the customer pays. d.When the customer takes possession of the merchandise.
a) Explain in detail different types of documentation that the business would expect to change hands in purchase, sales, purchase returns and sales returns etc. b) Show the model of atleast one Credit Sales invoice, Purchase invoice, Debit note and Credit note. (you can use imaginary figure) c) What are policies for trade discount/cash discount, Is there any products are subject to trade discount and why? Explain the terms and conditions in detail.
Identify if the two statements are either true or false. 1. The bill of lading is a document prepared by the seller detailing the terms of delivery 2. The sales invoice is the evidence for credit sales and purchases.
Which of the following situations may give rise to unearned revenue? Select one: a. Providing trade credit to customers. b. Selling inventory. c. Providing manufacturer warranties. d. Selling magazine subscriptions.
When should companies that sell gift cards to customersreport revenue?