Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

what is the answer for these questions Communication Activity The Show Time movie theatre sells thousands of gift certificates every year, The certificates can be

what is the answer for these questions

image text in transcribed
Communication Activity The Show Time movie theatre sells thousands of gift certificates every year, The certificates can be redeemed at any time because they have no expiry date. Some of them may never be redeemed (because they are lost or forgotten, for example). The owner of the theatre has raised some questions about the accounting for these gill certificates. Instructions Write an email to answer the following questions from the ownen Why la a Liability recorded when these certificates are sold? After all they bring customers into the theatre, where they spend money on snacks and drinks. Why should something that helps generate additional revenue be treated as a liability? How should the gift certificates that are never redeemed be treated? At some point in the future, can the liability related to them be eliminated? If so what type of journal entry would be madeT

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

13th Edition

8120335643, 136126634, 978-0136126638

Students also viewed these Accounting questions