Gift Card Sales Bookkeeping Question

Gift Card Sales

Do you count the sale of gift cards when you sell the card or when the card is redeemed for merchandise?

Gift Card

by Doris Peery
(Yorktown, VA )

My boss paid for materials with a gift card and his credit card. How do I enter the gift card?

Gift Certificates

What is the proper method to record gift certificates sold?

Gift Certificates

We have just recently opened a Golf Shop and would like to offer Gift Certificates. We do not know how to make the transaction. Do we keep a ledger, numbering the certificates? How do we keep track of the taxes? We know we can't enter the transaction in our register twice, so how do we handle all the necessary steps? We just need to know what to do from start to finish. We are currently doing our own accounting, so need to keep the records as simple as possible.

Thank you

Rita Wise

Gift Certificate Donations

by Shelley
(Waterloo, ON)

When a company donates gift certificates for services, are they only recorded if the certificate is ever used?

I know that when you sell a gift certificate you credit that to your gift certificate liability account and debit the bank account. Then when the certificate is used, you record the sale and taxes (credit) and off-set the payment to your gift certificate liability account (debit).

I just need some clarification on the donated gift certificates.

Thanks.

I asked around on this one and the consensus is that a gift certificate for services should only be recorded when the certificate is redeemed. You would do this with a credit to the sales account and a debit to the donations account.

However, a donation of TIME is not tax deductible. So, some have said that the transaction would not need to be recorded at all.

Does anyone else have an opinion on this one?

Gift Certificates and Bookkeeping

by Rae Seaman
(Victoria, BC Canada)

Hello, I have a small 2 person nail salon. I am having trouble with how to sell and keep record of gift certificates. I am in BC Canada and understand that if I sell a "service" the gift certificates can have an expirey date. If I sell a 'Dollar' amount they can't have an expirey date. I want my certificates to expire so that I don't have looming amounts of money hanging over me for years. What is the best way for me to sell and manage this? Do I claim taxes at time of the sale of the GC or do I wait until service has been rendered? Any help at this time would be benificial.

Thanking you in advance,

Rae

Gift Paid to Clients

In accounting treatment the gift items given to our clients, come into which ledger account?

Gift Received

A vender gave our company a large gift that we used to decorate our offices. How do we enter the value of the gift received by our corporation in the general ledger?

Thank you.

Gifted Fixed Assets

by Deb
(Oklahoma)

We are a non-profit corporation using QuickBooks Pro. We have received fixed assets (cargo trailer, furniture, etc.) as gifts. How are these entered?

Gifting Sale Price of Stock

We are an S-corp.
Have an employee buying 5% for 100K.
We will loan the money.
In addition we are gifting the employee $25,000 and will loan the balance of 75K
No $$ will change hands
Have to add this gift to their W-2
Will then give them a "withholding" bonus and have that go directly to federal income tax to cover their estimated taxes on the gift.
What is the Journal entry to recognize the 25,000 gift?
Many thanks.

Gifts in Kind

by Linda
(Windsor, Canada)

When a charitable organization received a Gifts in Kind such as office supplies etc., how is it entered. Do you benefit from the GST on such receipts as well by entering as a tax credit?

Giving Away Samples of our Product

What is the best way to record samples of our inventory that we give away to customers? I've been told I can put this under promotions but I need to keep track of our inventory. Also, is GST included in this amount or not?

GIVING CUSTOMERS GIFT CARDS FOR $X.XX IN SALES PURCHASED

by td
(Wisconsin)

We have a monthly special this month that we are offering to our customers. They get $X.xx off their total invoiced amount (after a certain dollar amount is exceeded) OR a same amount gift card to local restaurants. (We thought it would be nice to generate local business in our area, etc).
Now, how do I record the gift card into the invoice but still have the invoice for the total amount charged? If I put it in as a discount, my invoice total is off and their payment does not match up.
Also, the purchase of these cards should be coded as a purchase into the sales discount account, right? Can that even be done?
I've not taken accounting or bookkeeping courses, but have years of on-the-job experience instead. Yet, this is new to me and I'm struggling to figure out the double entries I'll need to do.

Stock Gift Certificate Bookkeeping Question

Stock Gift Certificate

Can someone help me with the appropriate entries for a gift of stock where the gift is valued to the donor on the day of the gift but the stock is sold the next day at a gain or loss?

Thanks

Journal Entry to Record Receipt of Gift.

A C Corportion receives a gift of real property. The journal entry would be to debit fixed assets. Would the credit be to revenue or to equity?

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