Date: 29/09/2020
Feedback Given By: unknown2019
Feedback Comment: Great job, followed instructions and delivered on time
Project Details
Project Status: Completed
This work has been completed by: onessmati14
Total payment made for this project was: $45.22
Project Summary: Please read all attached files and answer the questions thoroughly. No plagiarism or google copy and paste accepted. 1. What is the Revenue Recognition Principle? How can the revenue recognition principle be followed when accounting for gift card revenue? 2. According to the article, retailers are making different calls on how to account for gift card sales/incentive programs in financial statements. Refer to the section in chapter 3 that discusses qualities of useful information. Which qualities of useful information does this practice complicate, and how? 3. The article states that Circuit City defers gift card revenue, but if a card is unused for 2 years, the company deducts $2 a month from the value of the card. What does it mean to defer revenue? What does the company then record when selling a gift card. If $2 a month is reduced from the value of an unredeemed card, what would the adjusting journal entry be to accomplish this?