During the month of December, Emile's Electronics sells $9,000 of gift cards. From experience, Emile's management expects that 90% of the gift cards sold will be redeemed. In January, $5,670 of these cards is redeemed for merchandise with a cost of $3,570. In February, a further $1,701 of these cards is redeemed for merchandise with a cost of $1,301. The company uses a perpetual inventory system. Part 1 Your answer is partially correct. Prepare journal entries to record the transactions for December, January, and February (Enter debit entries first followed by credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round answers to decimal places, e.g. 125.) Date Account and explanation Debit Credit Dec. Cash 9000 9000 Gift Card Liability (To record cash received for gift cards.) Jan. 5670 5670 (To record gift card redeemed for merchandise.) 3570 3570 (To record cost of merchandise.) Gift Card Liability (To record gift card breakage.) Fab Feb. (To record gift card redeemed for merchandise.) Cost of Goods Sold (To record cost of merchandise.) Gift Card Liability (To record gift card breakage.) Part 2 How much income (if any) was earned in each of these months? (Round answers to O decimal places, e.g. 125.) December January February $ $ $ Sales revenue Cost of goods sold Gross margin $ $ $ Part 3 What liability (if any) would appear on the company's statement of financial position at the end of each of these months? (Round answers to 0 decimal places, e.g. 125.) $ Balance, December 31 Balance, January 31 $ $ Balance, February 28