User Account

All Pages

At what point should the revenue from the gift cards

Assignment Help Accounting Basics
Reference no: EM131144195

There are many situations in business where it is difficult to determine the proper period in which to record revenue. Suppose that after graduation with a degree in finance, you take a job as a manager at a consumer electronics store called Atlantis Electronics. The company has expanded rapidly in order to compete with Best Buy and Circuit City. Atlantis has also begun selling gift cards. The cards are available in any dollar amount and allow the holder of the card to purchase an item for up to 2 years from the time the card is purchased. If the card is not used during that 2 years, it expires.

Instructions

Answer the following questions. 

At what point should the revenue from the gift cards be recognized? Should the revenue be recognized at the time the card is sold, or should it be recorded when the card is redeemed? Explain the reasoning to support your answers.

Reference no: EM131144195

Questions Cloud

Explain difference between common network infrastructures : Complete the following modules in the Pluralsight course, "Network Architecture for CompTIA Network+ (N10-006)": Differentiating Between Common Network Infrastructures.
Who are the stakeholders in this case : The controller of Ruiz Co. believes that the yearly allowance for doubtful accounts for Ruiz Co. should be 2% of net credit sales.
Compute the period of oscillation of a pendulum of length : Compute the period of oscillation of a pendulum of length 1 m at the North Pole where the acceleration due to gravity is measured to be 9.832 m/s2.
Companies have used a strategic alliance successfully : Which of these firms do you think is more likely to accomplish its objectives and why? - What other companies have used a strategic alliance successfully.
At what point should the revenue from the gift cards : At what point should the revenue from the gift cards be recognized? Should the revenue be recognized at the time the card is sold, or should it be recorded when the card is redeemed? Explain the reasoning to support your answers.
How are leakages and injections balanced : How are leakages and injections balanced? Why will demand and supply in the product market be equal if leakages and injections are equal?
Show the equilibrium in the labor market : Trace through how each of the steps in the analysis has to be changed. Show the equilibrium in the labor market. What happens to real wages, employment, GDP, and saving if the labor supply function shifts to the right?
Determine the natural frequency of the system in hertz : Determine the natural frequency of the system in hertz -  Repeat this calculation for a mass of 50 kg and a stiffness
Key differences in organic inorganic and analytical chemist : Write a custom essay on the given topic "- Key differences in Organic, Inorganic and Analytical Chemistry".

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd