Gift Cards Gift cards are one form of advance collection of revenues. When gift cards are received, cash is debited by the seller and deferred revenues are credited. Here, deferred revenues are liability. In future, deferred revenues are reduced and revenues are recognized when gifts are redeemed by the customer. To determine: the amount of gift card revenue associated with the August 2016 gift card sales would L get to recognize in 2016 and 2017.

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Chapter 13, Problem 13.7BE

To determine

Gift Cards

Gift cards are one form of advance collection of revenues. When gift cards are received, cash is debited by the seller and deferred revenues are credited. Here, deferred revenues are liability. In future, deferred revenues are reduced and revenues are recognized when gifts are redeemed by the customer.

To determine: the amount of gift card revenue associated with the August 2016 gift card sales would L get to recognize in 2016 and 2017.

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