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Gift Card & Gift Certificate Accounting ProceduresAddendum158Gift Certificate/Card Accounting Methods Gift certificates & cards are often a source of confusion because there are so many methods that

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What is gift card accounting?

Gift card accounting is the process of tracking and recording the financial transactions and liabilities associated with the sale and redemption of gift cards.

Who is required to file gift card accounting?

Retailers and businesses that sell and process gift cards are required to file gift card accounting.

How to fill out gift card accounting?

Gift card accounting is filled out by recording the initial sale of gift cards as a liability and then updating the accounting records as gift cards are redeemed or expire.

What is the purpose of gift card accounting?

The purpose of gift card accounting is to accurately track the financial transactions and liabilities associated with gift cards to ensure proper financial reporting and compliance.

What information must be reported on gift card accounting?

Gift card accounting must report the initial sale of gift cards, the redemption of gift cards, and any remaining gift card liabilities or expired gift cards.

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