Business, 23.02.2021 03:30 haithjamel

Suppose you are an accountant for a large retail company. At the end of the quarter, the General Manager (GM) tells you: "Our sales are slightly below forecast and we will not make our bonus this quarter. However, I noticed that we got a lot of cash from selling gift cards. I also noticed that this cash is not included in our quarterly sales revenue. Can you include it, so that our reported sales meet forecast and we get paid our bonus?" 1.How would you explain to the GM why the cash received for gift cards should or should not be included in your response reported sales revenue. 2. After posting your own answers to the above questions, read those of your classmates and discuss them. 3. Specifically, what would the consequences of reporting the cash received for gift cards as sales revenue be and why would you refuse to report them as sales revenue.

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Suppose you are an accountant for a large retail company. At the end of the quarter, the General Man...

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