Question
1.) a) Kaimondake is a department store. Its sales managers wish to introduce a generous bonus app. The purpose is to boost current sales and
1.) a) Kaimondake is a department store. Its sales managers wish to introduce a generous bonus app. The purpose is to boost current sales and increase customer loyalty by offering free high end products to their shoppers, in the future, once they have spent a certain amount of money. (i) Imagine that you are working for Kaimondake as an accountant and you have a meeting with the sales managers. Making reference to concepts of costs & liabilities and any relevant accounting conventions, explain to the sales managers the accounting implications of the introduction of the bonus card. How will the Kaimondake's accounts need to be adjusted once the app is introduced? (5 marks)
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