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.

Alpha company uses the periodic inventory system for purchase & sales of merchandise. discount terms for both purchases & sales are, 2/10, n30 and the gross method is used. unless otherwise noted, fob destination will apply to all purchases & sales. the value of inventory is based on periodic system. on january 1, 2016, beginning inventory consisted of 350 units of widgets costing $10 each. alpha prepares monthly income statements. the following events occurred during the month of jan.: dateactivitya.jan. 3purchased on account 350 widgets for $11 each.b.jan. 5sold on account 400 widgets for $30 each. paid freight out with petty cash of $150.c.jan. 10purchased on account 625 widgets for $12 each.d.jan. 11shipping cost for the january 10 purchased merchandise was $400 was paid with a cheque by alpha directly to the freight company.e.jan. 12returned 50 widgets received from jan. 10 purchase as they were not the correct item ordered.f.jan. 13paid for the purchases made on jan. 3.g.jan. 21sold on account 550 widgets for $30 each. paid freight out with petty cash of $250.h.jan. 22authorize credit without return of goods for 50 widgets sold on jan. 21 when customer advised that they were received in defective condition.i.jan. 25received payment for the sale made on jan. 5.j.jan. 26paid for the purchases made on jan. 10.k.jan. 31received payment for the sale made on jan. 21.use this information to prepare the general journal entries (without explanation) for the january events. if no entry is required then enter the date and write "no entry required."