i just took over the bookkeeping for 2 restaurants and am trying to make the transition from the previous person to me as smooth as possible. When i started to put in this years sales receipts (yes, no one has done the bookkeeping since Jan 2020) i noticed something strange that I can't figure out. Maybe someone out there can enlighten me. This is how the previous person put in a receipt:
Sales Sales Income 1 $100.00 $100.00
Tax Sales Tax 1 $10.00 $10.00
Gift Cards Gift Card Sale 1 $20.00 $20.00 (a liability account)
Cash Sales: cash -1 $10.00 ($10.00)
Visa/MC Sales: credit -1 $95.00 ($95.00)
Gift Card Gift Card Redemption -1 $25.00 ($25.00) (same liability account)
Total $0.00
Does this make sense to anyone? Shouldn't a gift card purc