Target Corporation sells gift cards that can be used at any of the company's Target stores or on Target.com.
Target encodes information on the card's magnetic strip about the card's value and the store where it was purchased. Target gift cards do not have expiration dates.
(a) How will Target's balance sheet reflect the gift card? Will the balance sheet of these cards be classified as current or non-current?
(b) When does Target record revenue from the gift card?
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