Our company often gives gift certificates to non-profit groups for them to sell at raffles or auctions. I'm wondering how enter these transactions.
I have three accounts
1150 Gift Certificates Redeemed
1250 Gift Certificates Sold
5050 Donations.
I'm assuming that when a donated Gift certifcate is brought in, I should debit Donations, but I'm not sure what account to credit, nor am I sure if I should enter the Gift Certificate when it's initially given out.
If I credit 1250 - Gift Certificates sold when I give away a Gift Certificate as a donation, how do I handle it if the gift certificate is never brought in? Is it still a donation?
Thanks!