E-commerce
Gift Card Breakage (Unredeemed)
Recognizing revenue from gift card balances statistically unlikely to ever be redeemed.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Gift Card Liability | Liability (-) | 800.00 | - |
| Other Income (Gift Card Breakage) | Revenue (+) | - | 800.00 |
💡 Accountant's Note
Based on historical redemption data, a percentage of gift cards expire unused. Under IFRS 15, this estimated 'breakage' amount is recognized as Other Income using the proportional method over time.
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