Don't come to Massachusetts
Gov. Baker of Massachusetts just ruled all restaurants are take-out only, gatherings over 25 are prohibited (including things like health clubs and private clubs) and no visitors to long-term care or ...
Forum Discussion
Eric&Lisa….
"Pretty sure that is not how Gift Certificates work from an accounting standpoint. The company needs to hold those funds 'on the books' and cannot spend them on expenses until they are redeemed. If I buy a $20 gift certificate, the accountant credits $20 to the bank account. But in issuing the GC, they also have to enter a debit for "We owe Eric $20 worth of cheeseburgers". Buying GC's does not go in a restaurant's nightly income on their balance sheet."
-----------------------
The gift certificates are bought in cash or credit card. That is revenue on the books when they are sold. They do not "hold" this revenue account until the Gift Certificate is redeemed.
So are you saying if I bought a $50 gift certificate and I never redeemed it or it expired. That is not $50 bucks in the revenue? Of course it is. What do they do with the $50 gift certificate that was never redeemed? Throw the cash in the trash?
Gift Certificates are not returnable. It is money in the bank. When it is redeemed it is debited from previous accrued income against the net revenue for the month.
It is revenue when purchased.
If you sell $5,000 in cheeseburges and redeem $1,000 in cheesburger gift certificates then you have a NET of $4,000 income for that financial period (month).
"Pretty sure that is not how Gift Certificates work from an accounting standpoint. The company needs to hold those funds 'on the books' and cannot spend them on expenses until they are redeemed. If I buy a $20 gift certificate, the accountant credits $20 to the bank account. But in issuing the GC, they also have to enter a debit for "We owe Eric $20 worth of cheeseburgers". Buying GC's does not go in a restaurant's nightly income on their balance sheet."
-----------------------
The gift certificates are bought in cash or credit card. That is revenue on the books when they are sold. They do not "hold" this revenue account until the Gift Certificate is redeemed.
So are you saying if I bought a $50 gift certificate and I never redeemed it or it expired. That is not $50 bucks in the revenue? Of course it is. What do they do with the $50 gift certificate that was never redeemed? Throw the cash in the trash?
Gift Certificates are not returnable. It is money in the bank. When it is redeemed it is debited from previous accrued income against the net revenue for the month.
It is revenue when purchased.
If you sell $5,000 in cheeseburges and redeem $1,000 in cheesburger gift certificates then you have a NET of $4,000 income for that financial period (month).
