Rikard’s Menswear sells $4,750 of gift cards for cash in December 2021. Rikard’s has a December 31 fiscal year end and uses a perpetual inventory system. In January 2022, $2,425 of the gift cards are redeemed for merchandise with a cost of $1,070. Prepare journal entries for Rikard’s for December 2021 and January 2022 assuming all gift card balances will be redeemed.