Although target already has the money once a gift card has been purchased, they will not recognise the money as revenue until you use the card.
Suppose my lawn mowing guy charges $50 each time he mows my lawn, and he comes 12 times a year. In January I just transfer him $600 because I don’t want to muck around with smaller payments all the time.
When he calculates his “revenue” for January, should he include the whole $600? It would be more accurate to set aside the $550 he hadn’t really earned yet, and recognise that once he actually does the work.
There’s more geaky accounting stuff I could say, but in summary if you want to send a message to Target management, refrain from using gift cards during the boycott.
Not really. The explanation is somewhat complex.
Although target already has the money once a gift card has been purchased, they will not recognise the money as revenue until you use the card.
Suppose my lawn mowing guy charges $50 each time he mows my lawn, and he comes 12 times a year. In January I just transfer him $600 because I don’t want to muck around with smaller payments all the time.
When he calculates his “revenue” for January, should he include the whole $600? It would be more accurate to set aside the $550 he hadn’t really earned yet, and recognise that once he actually does the work.
There’s more geaky accounting stuff I could say, but in summary if you want to send a message to Target management, refrain from using gift cards during the boycott.