Bavarian Bar and Grill opened for business in November $2021.$ During its first two months of operation, the restaurant sold gift cards in various amounts totaling $$8,400,$ mostly as Christmas presents. They are redeemable for meals within two years of the purchase date, although experience within the industry indicates that $70\%$ of gift cards are redeemed within one year. Gift cards totaling $$2,900$ were presented for redemption during $2021$ for meals having a total price of $$3,300.$ The sales tax rate on restaurant sales is $4\%,$ assessed at the time meals $($not gift cards$)$ are purchased. Sales taxes will be remitted in January.

Required:

$1.$ Prepare the appropriate journal entries $($in summary form$)$ for the gift cards and meals sold during $2021($keeping in mind that, in actuality, each sale of a gift card or a meal would be recorded individually$).$

$2.$ Determine the liability for gift cards to be reported on the December $31,2021,$ balance sheet.

$3.$ What is the appropriate classification $($current or noncurrent$)$ of the liabilities at December $31,2021?$