Suppose Cardullo’s gift cards expire after one year. A customer had a gift card for $100, of which he used $75 to purchase gourmet cheeses. At the end of the year, the card expires with $25 unredeemed. How do you think Cardullo’s should account for the unredeemed amount?

Cardullo

Unredeemed Gift Card amount:

The $25 of the unredeemed gift card should be credited to Revenue Account and debited to the Deferred Revenue Account as expired gift card.

Explanation:

Gift cards establish some form of deferred revenue or gift card liability which the Cardullo must settle with the exchange of goods or services in the future.  However, if a customer is unable to redeem his gift card balance of $25 because of expiration, the revenue due on the expired portion, Cardullo must then credit the $25 to the Revenue account and debit the Deferred Revenue or Gift Card Liability account to close this unredeemed portion.

the page presents four different kinds of threats that volcanoes pose and what to do before, during, and after an eruption.

answer; i believe its (d) intrinsic;