[Anonymous]

I took my kid with me to a coffe shop today.

They had a Buy 1 Get 1 free coupon.

My kid ordered a smoothie, I ordered a cappuccino.

When I sat down to enjoy my cappuccino, I noticed that the receipt only showed my kid’s smoothie.

She didn’t ring up my $4 coffee.

It’s a silly question, I just wondered what’s gonna happen to their book.

And yes, I was there to take a break from exam study.

But really, I know a lot of people use the coupon(widely distributed in-mail advertisement).

Their inventory will decline unusually quicker than the revenue recorded.

It’s not a franchise, it’s a standalone store.

Did they purposely not record the coupon sale so that they can claim a loss on inventory?

I have not taken FAR, REG nor BEC, so I have almost no knowledge on the tax treatment( tax accounting and intermed. Acc was something I took 5 centuries ago).

Thank you for reading!

[CPA50]

Great question! I asked my Whole Foods clerk who got to claim the tax deduction when they donate money for me bringing my own bag. Guess I need to get a life!

AUD 88 (expired), 80 retake
FAR 64,69,67,73,67,73,73,73, August 3
REG 75 (expired) September 7
BEC 72, 77

The adventure continues...

[Anonymous]

I'm guessing an allowance account covers some of that shrinkage?

[Anonymous]

@CPA50

It is tricky if it's a non-monetary charitable donation or voluntary donation by Whole Foods, but in you case it's money collected from customers and send the entire amount to the Non-profit organization. But then it could have been recorded as “discount” if the customers decided to do so.

@_Nick_

What if they recorded as usual, minus the BOGO discount, do they get to claim a tax deduction as promotion(if there is such a thing)? It can't be expensed or write off.

Either way, I think I will be up all night because of the coffee. My hands are shaking…

[Author]

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