mounts received from the sale of gift cards should be recognized by the seller at the time of sale.   True or False

Q: Which one of the following statements best describes the purpose of a goods despatched note? A It is…

A: The goods dispatch note is prepared by seller, so as to keep the record of goods being dispatched.

Q: As a general rule, the buyer has the right to examine the goods before accepting them. The following…

A: As a general rule, the buyer has the right to examine the goods before accepting them. The following…

Q: Identify if the two statements are either true or false. 1. The bill of lading is a document…

A: The given statement answer is given in the below step.

Q: Drawing, explain how a purchase transaction on account impacts the buyer and the seller and also…

A: Purchase transaction means when one party purchases goods from another party. This transaction can…

Q: If merchandise purchased on account is returned, the buyer may inform the seller of the details by…

A: Given, Goods are purchased by-merchandise is returned.

Q: The credit period during which the buyer of merchandise is allowed to pay usually begins with what…

A: Credit period generally begins with the date of sales as recorded on the invoice.If the payment is…

Q: Which of the following statements is correct about credit period? A. If a customer purchases goods…

A: Credit sales means when goods of the business are sold on account to customers and customers has not…

Q: A form used to request the responsible person or department to purchase merchandise or other…

A: Person responsible to make purchase would require the details to the purchases required to be made.

Q: types of discounts is given to the buyer if the buyer makes a bulk purchase ?

A: The amount that is a fixed rate and deductable from the invoice price is known to be discount. This…

Q: Seller is notified of goods returned by the buyer when he receives a

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

Q: Which one of the following statements is false? a. FOB shipping point means the buyer has legal…

A: FOB shipping point means title of the goods is transferred when goods are placed at the shipping…

Q: Before a voucher for the purchase of merchandise is approved for payment, supporting documents…

A:

Q: accordance with IFRS 15,  customer loyalty awards on the goods or services sold, the transaction…

A: As per IFRS 15, Revenue recognition  In case of sale of a product with loyalty awards,then the sales…

Q: If merchandise sold on account is returned to the seller, the seller may inform the customer of the…

A: Solution:- If merchandise sold on account is returned to the seller, the seller may inform the…

Q: What happens when a client (buyer) returns goods bought on credit

A: A client (buyer) returns goods bought on credit shown here:

Q: How would the following affect Target’s gift card liability (indicate “increase,”“decrease,” or “no…

A: Financial Statement:   A financial statement is the complete record of financial transactions that…

Q: When should a seller view a payment to its customer as a refund of part of the price paid by the…

A: Revenue recognition principle:   The revenue recognition principle refers to the revenue that…

Q: Which of the following feature/s related to FOB shipping point under shipping terms, except?

A: Solution- FOB shipping point – Notes responsibility of goods and title transfer from seller to buyer…

Q: A retailer pays for purchased merchandise within the discount window. The retailer would recognize…

A: Accounts Payable - Accounts Payable is the creditor for the company. Company owed some amount for…

Q: which two accounts are used to recognize shipping charges for a buyer assuming the buyer purchases…

A: Shipping cost depends upon the terms of the contract. Generally, there are two types of conditions.…

Q: One such issue is the Sale with Right of Return. Discuss how do you recognize revenue when the…

A: Revenue Recognition: Revenue recognition is a bookkeeping rule that states that income should be…

Q: When should companies that sell gift cards to customers report revenue?

A: The Answer

Q: A retail store received cash and issued gift certificates that are redeemable in merchandise. How…

A: Solution: When cash is received in lieu of gift certificates, deferred revenue is credited. When…

Q: In general, revenue is recognized whena. The sales price has been collectedb. A purchase order has…

A: Revenues: Revenues are earnings from operations of a business. The operating activities are sale of…

Q: Disclosure Note 2 discusses Target’s accounting for gift card sales. Does Targetrecognize revenue…

A: Revenue:   It refers to the earnings of the business from their normal business operations. This…

Q: For a Credit Invoice Received, which entry should be made?   debit to sales returns and…

A: Journal entry is the process of recording the business transactions in the books of accounts for the…

Q: The following items are recorded in the general journal, except Select one: A. Purchase of…

A: >Journal entries are the first accounting treatment that is given to a transaction, where in the…

Q: When does a company recognize revenue for a sale of a gift card?

A: Gift card: Prepayment which is made by the customer for the future purchase is known as a gift card.…

Q: When should revenue from the sale of merchandise normally be recognized? A)When the customer takes…

A: Revenue recognition concept says that when all the risk and reward has been passed on to the buyer…

Q: A deduction allowed to wholesalers and retailers from the price of merchandise listed in catalogs is…

A: A deduction allowed to wholesalers and retailers from the price of merchandise listed in catalogs is…

Q: Which document typically triggers the process of recording a liability? a. purchase requisition b.…

A: Liability: It can be defined as the obligation that arises as a result of past events of the…

Q: Prepaid expenses are normally created as a part of the purchasing process. Prepaid energy bills,…

A: Introduction Prepaid expenses are the advance payments made for goods and services to be used in…

Q: Determine if this shall result in recognition of liabilities 19.Sale of gift certificates…

A: Liability is recognized in the balance sheet when it is probable that an outflow of resources…

Q: Which of the following document will be given by the supplier at the time of receipt of cash for the…

A: Receipts is issued when some party is paying cash and other is receiving cash . The party receiving…

Q: Is a customer’s right to return merchandise a performance obligation of the seller? How should…

A: Right to return:   Right to return refers to the rights that are given by the seller when customer…

Q: What is the purpose of the Purchase Returns and Allowances account? Why not just record a purchase…

A: Purchase accounts are used in periodic inventory system as a general ledger account in which…

Q: When a seller receives payment from a customer who takes the discount for paying early, the journal…

A: When a  seller receives payment within discount period, cash account will be debited with accounts…

Q: Using accrual accounting, what journal entry will Almost the Best Buy record when a customer…

A: When the customer purchases the gift card  To be transferred to unearned revenue  When sales is…

Q: What happens when a client (buyer) returns credit-purchased goods?

A: The Answer: