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Hi, my name is Mark. I will be happy to help you with your questions. So you are selling gift cards for the grocery store in Mexico. If a customer buys a $50 gift card do they pay $50 or $60?
You would create the following journal entry.
Cash ..... $60
Due to Grocery Store .......... $50
Processing Fee Income......... $10
A liability would be created for the amount of gift cards that you sell.
The liability is the amount of money you are holding in trust for the grocery store. So assuming during the month you sold $1,000 of gift cards. This is the amount that you would owe to the grocery store (assuming that there is no fees that the grocery store is required to pay).
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