Hello, I use Quickbooks Online and my business is considered a Sole Proprietorship/DBA. Can somebody list the steps/transactions to make to account for this situation:
I donated a gift certificate to be a part of a raffle on 2/28/20. What transactions do I make to show that there is a gift card out there, but it was donated. Also, what transactions do I enter when the person comes back to actually redeem the gift certificate. Also the gift certificate that was donated is actually for a specific service to be done which then translates into a cash amount for that service. (Ex: Interior Detailing Package, is equal to about $60 depending on the type of vehicle the gift certificate holder brings in).
I have read many articles on selling and redeeming gift cards and I understand the need for a liability account to show how many outstanding gift cards we have out there. I am just confused because this gift was donated and I need a step by step explanation for each transaction I should make in Quickbooks Online as well as each new account in the Chart of Accounts I should create.
Thank you for your help!
