Logan's Roadhouse opened a new restaurant in November. During its first two months of operation, the restaurant

sold gift cards in various amounts totaling $$2,200.$ 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 $$2,200$ 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.