The following facts relate to gift cards sold by Sumbru Coffee Company during 2021. Sunbru's fiscal year ends on December 31.

(a) In October 2021, sold $3,000 of gift cards, and redeemed $500 of those gift cards.

(b.) In November 2021, sold $4,000 of gift cards, and redeemed $1,400 of October gift cards and $700 of November gift cards.

(c.) In December 2021, sold $3,000 of gift cards, and redeemed $200 of October gift cards, $2,000 of November gift cards, and $400 of December gift cards.

(d.) Sunbru views a gift card to be "broken" (with a remote probability of redemption) two months after the end of the month in which it is sold. Thus, an unredeemed gift card sold at any time during July would be viewed as broken as of September 30.

Required:

1. Prepare all journal entries appropriate to be recorded only during the month of December 2021 relevant to gift card sales, gift card redemptions, and gift card breakage.
2. Determine the balance of the deferred revenue liability to be reported in the December 31, 2021, balance sheet. Show the relevant T-account information to support your answer.