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Midwest sells gift cards. The cards are available in any dollar amount and allow the holder of the card to purchase an item for up
Midwest sells gift cards. The cards are available in any dollar amount and allow the holder of the card to purchase an item for up to 2 years from the time the card is purchased. If the card it not used during those 2 years, it expires. At what point should the revenue from the gift cards be recognized. Should the revenue be recognized at the time the card is sold, or should it be recorded when the card is redeemed? explain the reasoning to support your answers
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