Sarah’s Pottery and Gift store had the following transactions:

a. On November 15, 2023, Katie from the small office business Custom Graphics contacted Sarah to purchase gift cards for the holiday season. Katie’s boss gave her $2,000 to purchase 40 gift cards with a value of $50 each from Sarah.

b. During the month of December, 15 of the $50 gift cards were used in full by staff members of Custom Graphics. Prepare the journal entries for each of the transactions. Calculate the liability that will remain on the December 31, 2023 balance sheet for Sarah’s Pottery and Gift Store.