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The marketing department of Oriole and Company has developed a strategy to increase sales. For every $100 of purchases made by a customer, the customer
The marketing department of Oriole and Company has developed a strategy to increase sales. For every $100 of purchases made by a customer, the customer receives a $5 gift card with no expiration date. Oriole assumes the redemption rate on the gift card is 90%. Oriole has the following information: - Sales of $11,000,000 for 2025 - Gift card redemptions of $66,000 for 2025 - Gift card liability at December 31, 2024 of $55,000 What is the amount of the liability at December 31, 2025? Gift card liability, Dec. 31, 2025
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