Escargot Inc. is a $5-$star restaurant in Cincinnati. The restaurant sells $500$ gift cards during January, Year $1.$ Each gift card has a face value of $$300.$ The gift cards never expire, although based on industry experience, Escargot expects that $12\%$ of the balances will never be redeemed. During February Year $1,$ $$45,000$ of gift cards are redeemed, and in March Year $1,$ another $$80,000$ is redeemed.

Required:

$1.$ Prepare journal entries for Escargot$$s gift card transactions for January through March.

$2.$ Assume that at the end of April, due to the popularity of the restaurant, Escargot reduces its estimate of the amount of gift cards that will go unused to $8\%.$ During April, gift cards worth $$10,000$ are used. Prepare any necessary journal entries.