Accounting For Gift Cards

Gift cards accounting involves establishing a liability for the obligation to provide goods at a future date. A customer can redeem gift cards and the liability is reduced due to gift card revenue recognition. Not all gift cards are redeemed and the business needs to estimate the revenue (breakage) to be released proportionately as other gift card balances are redeemed by customers.

Last modified March 1st, 2021 by Michael Brown
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Membership Dues

The double entry bookkeeping for membership dues paid in advance is similar to other forms of income. For example, if a member pays an annual membership renewal of 1,200 in cash then the first bookkeeping entry would be to the deferred membership income account.

Last modified January 13th, 2020 by Michael Brown
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