When you receive funds for a gift certificate, no service or product has been provided to the customer. Therefore, you should not count the funds received as income; instead, you should hold them in a liability account until they are “earned” and a service or product is provided in exchange for them. In Chapter 9, you have learned about dealing with gift certificates in QuickBooks and how to track them for your business. Now assume you are recommending to Susie Elsasser how to track gift certificates for the Tea Shoppe at the Lake. 

In your discussion post, you should: 

1.   Compare and contrast the difference between earned and unearned revenue in a way that Ms. Elsasser (a non-accountant) can understand. 

2.  Review and discuss the process for setting up and tracking gift certificates in QuickBooks. 

3. Research and discuss how to set up and track gift certificates received from vendors.

Answer rating: 100% (QA)

1 Comparing and contrast the difference between earned and unearned revenue In a business we earn income or revenue the same thing once we deliver service In my workshops we do a chunk on the differen... View the full answer