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the accounting for gift cards is somewhat unique weve got a couple of issues the first being that at point-of-sale when someone actually buys the gift card a company cannot recognize revenue so if someone walks into a store and pays $200 cash for a gift card the company cant say oh we have two hundred dollars of revenue and the reason is that that person has not redeemed the gift card yet at some point that so they give it to a family member and then that person comes in a month later and says hey I won sup of that merchandise and then the store is obligated to give that merchandise so when this store initially receives the $200 cash for the gift card theyre actually going to recognize a liability so theyre gonna debit cash and theyre gonna credit a liability to show that they have an obligation at some point in the future to provide goods or services to the person holding the gift card now what if the person doesnt redeem all of the gift cards what if is so weve got a two hund
