Question: When a customer buys a gift card from a retailer, which of the following is the most appropriate approach to recognize revenue? Revenue should be

When a customer buys a gift card from a retailer, which of the following is the most appropriate approach to recognize revenue?

Revenue should be recognized as soon as the customer pays for the gift card.

Revenue should be recognized immediately but expense should be recognized when the gift card is used to make purchases.

The retailer should wait for one week before recognizing the customers payment for the gift card as revenue.

Revenue should be recognized when the gift card is used to make purchases.

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