Exercise 13-6 (Algo) Gift cards; sales taxes; financial statement effects [LO13- Bavarian Bar and Grill opened for business in November 2024. During its first two months of operat various amounts totaling $8,600, mostly as Christmas presents. They are redeemable for meals with although experience within the industry indicates that 80% of gift cards are redeemed within one ye presented for redemption during 2024 for meals having a total price of $3,400. The sales tax rate or 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 duri 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 31,2024 , balance sheet. 3. What is the appropriate classification (current or noncurrent) of the liabilities at December 31,20 Complete this question by entering your answers in the tabs below. Determine the liability for gift cards to be reported on the December 31,2024 , balance sheet. Exercise 13-6 (Algo) Gift cards; sales taxes; financial statement effects [LO13-3] Bavarian Bar and Grill opened for business in November 2024. During its first two months of operation, the restaurant sold g various amounts totaling $8,600, mostly as Christmas presents. They are redeemable for meals within two years of the purch although experience within the industry indicates that 80% of gift cards are redeemed within one year. Gift cards totaling $3,0 presented for redemption during 2024 for meals having a total price of $3,400. The sales tax rate on restaurant sales is 4%, a 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 2024 (keeping in mind actuality, each sale of a gift card or a meal would be recorded individually). 2. Determine the liablily for gift cards to be reported on the December 31,2024 , balance sheet. 3. What is the appropriate classification (current or noncurrent) of the liabilities at December 31, 2024 ? Complete this question by entering your answers in the tabs below. What is the appropriate classification (current or noncurrent) of the liabilities at December 31,2024 ? Prepare the appropriate journal entries (in summary form) for the gift cards and meals sold during 2024 (keeping actuality, each sale of a gift card or a meal would be recorded individually). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record redemption of gift cards and meals sold in 2024 and redeemed in 2024. Note: Enter debits before credits. Exercise 13-6 (Algo) Gift cards; sales taxes; financial statement effects [LO13-3] Bavarian Bar and Grill opened for business in November 2024. During its first two months of operation, the restaurant sold gift cards in various amounts totaling $8,600, mostly as Christmas presents. They are redeemable for meals within two years of the purchase date, although experience within the industry indicates that 80% of gift cards are redeemed within one year. Gift cards totaling $3,000 wore presented for redemption during 2024 for meals having a total price of $3,400. 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 2024 (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 31,2024 , balance sheet. 3. What is the appropriate classification (current or noncurrent) of the liabilities at December 31,2024 ? Complete this question by entering your answers in the tabs below. Prepare the appropriate joumal entries (in summary form) for the gift cards and meals sold during 2024 (keeping in mind that, in actuality, each sale of a gitt card or a meal would be recorded individually). Note: if no entry is reguired for a transaction/event, select "No journat entry required" in the first account field