Discussion Board- Sales Revenue Forecast

Suppose you are an accountant for a large retail company. At the end of the quarter, the General Manager (GM) tells

you: Our sales are slightly below forecast and we will not make our bonus this quarter. However, I noticed that we got

a lot of cash from selling gift cards. I also noticed that this cash is not included in our quarterly sales revenue.

Can you include it, so that our reported sales meet forecast and we get paid our bonus?

1.How would you explain to the GM why the cash received for gift cards should or should not be included in your

response reported sales revenue.