Issued for customer relationship purposes

Reference no: EM133633793

Question: Groupon issues credits to customers that can be applied to future purchases through its online marketplace. Credits are primarily issued to satisfy refund requests from customers (instead of providing them cash refunds). To a lesser extent, credits are issued for customer relationship purposes, to reward loyal customers. Discuss how Groupon should account the issuance of credits to customers.

Reference no: EM133633793

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