Listed below are selected transactions of Schultz Department Store for the current year ending December $31.$

$1.$ On December $5,$ the store received a deposit from the Selig Players to be returned after certain furniture to be used in stage production was returned on January $15.$

$$500$

$2.$ During December, cash sales were received, which include the $5\%$ sales tax that must be remitted to the state by the fifteenth day of the following month.

$$798,000$

$3.$ On December $10,$ the store purchased for cash three delivery trucks. $$120,000$

The trucks were purchased in a state that applies a $5\%$ sales tax.

$4.$ The store sold $25$ gift cards for $$100$ per card. At year$-$end, $20$ of the gift cards are redeemed. Schultz expects three of the cards to expire unused.

Number of gift cards sold

$25$

Value of each gift card

$$100$

Number of cards unredeemed at year$-$end

$20$

Number of cards expected to expire unused

$3$

Instructions

Prepare all the journal entries necessary to record the transactions noted above as they occurred and any adjusting entries relative to the transactions that would be required to present fair financial statements at December $31.$ Date each entry. For simplicity, assume that adjusting entries are recorded only once a year on December $31.$

NOTE: Enter a formula, a cell reference, or a value $($if you are unable to reference a cell$),$ into the yellow shaded input cells.

Debit Credit

$1.$ Dec$\mathrm{.}5$

$2.$ Dec. $1-31$

$3.$ Dec. $10$

$4.$ Dec. $31$

Dec. $31$