Specimen Exam 2, Q4,a, gift card

Assume that I buy a gift card for $1.43 The company will credit deferred revenue with $1.43 I use the gift card to buy goods with a value of $1 and then throw the card away or forget to use the rest of the value. The company knows from the past practice of its customers that they will not be back to spend the the $.43. So the company will credit the entire $1.43 to revenue