USA Account for free trading bonus on sign up


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Jul 8, 2018
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Background:
  • Binary options trading company
  • End users sign up and deposit funds
  • End users purchase options
    • Options expire worthless
    • Options expire for profit
    • Options are traded for profit
    • Options are traded for loss
Scenario:
  • Customer signs up and receives $10 in free trading money (sing up bonus)
Question:
  • How do I account for for the initial "cash giveaway" free trading bonus?
    • Is this a contra revenue account?
    • Is this a deferred liability?
    • Is this a marketing expense?
Notes:
  • I can see this being a contra revenue account if the end user profits but what if they don't?
 

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