E-commerce
Gift Card Redemption — Product Purchase
Customer uses a gift card to buy products from the online store.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Gift Card Liability | Liability (-) | 100.00 | - |
| Sales Revenue | Revenue (+) | - | 100.00 |
| Cost of Goods Sold | Expense (+) | 40.00 | - |
| Merchandise Inventory | Asset (-) | - | 40.00 |
💡 Accountant's Note
Redemption converts the liability to earned revenue and simultaneously recognizes COGS. Both must be recorded at the same time.
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