During its first three months of operation, Palomino's sold gift cards in various amounts totaling $$1,750.$ The cards are redeemable for meals within one year of the purchase date. Gift cards totaling $$636$ were presented for redemption during the first two months of operation prior to year$-$end on December $31.$ The sales tax rate on restaurant sales is $6\%,$ assessed at the time meals $($not gift cards$)$ are purchased. Logan's will remit sales taxes in January.

Required:

& $2.$ Record $($in summary form$)$ the $$1,750$ in gift cards sold $($keeping in mind that, in actuality, each sale of a gift card or a meal would be recorded individually$)$ and the $$636$ in gift cards redeemed. $($Hint$.$ The $$636$ includes a $6\%$ sales tax of $$36.)$

Determine the balance in the Deferred Revenue account $($remaining liability for gift cards$)$ to be reported on the December $31$ balance sheet.

Complete this question by entering your answers in the tabs below.

Req $1$ and $2$

Record $($in summary form$)$ the $$1,750$ in gift cards sold $($keeping in mind that, in actuality, each sale of a gift card or a meal would be recorded individually$)$ and the $$636$ in gift cards redeemed. $($Hint: The $$636$ includes a $6\%$ sales tax of $$36.)($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$

Journal entry worksheet

$12$

Record the $$1,750$ in gift cards sold.

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$General Journal,Debit,Credit$],[1,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$