Target Corporation prepares its financial statements according to U.S. GAAP. Targets financial statement and disclosure notes for the year ended January 30, 2016.

Required:

On what line of Targets income statement is revenue reported? What was the amount of revenue Target reported for the fiscal year ended January 30, 2016?

Disclosure Note 2 indicates that Target generally records revenue in retail stores at the point of sale. Does that Target generally record revenue at a point in time or over a period of time? Explain.

Disclosure Note 2 indicates that the customers (guests) can return some merchandise within 90 days of purchase and can return other merchandise within a year of purchase. How is Targets revenue and net income affected by returns, given that it does not know at the time a sale is made which items will be returned?

Disclosure note 2 indicates that 'commissions earned on sales generated by leased departments are included within sales and were $37 million in 2015 Do you think it likely it likely that Target is accounting for those sales as a principal or an agent? Explain.

Disclosure Note 2 discusses Targets accounting for gift card sales. Does Target recognize revenue when it sells a gift card to a customer? if not, when does it recognize revenue? Explain

Disclosure Note 4 discussed how Target accounts for consideration received from vendors, which they call vendor income. Does that consideration produce revenue for Target? Does that consideration produce revenue for Targets vendors? Explain