During December $2023,$ Sandhill Ltd$.$ sells $$22,500$ of gift cards to customers. From reliable past experience, management estimates that $6\%$ of the gift cards sold will not be redeemed by customers. In January $2024,$$$2,000$ of these cards is redeemed for merchandise with a cost of $$1,500.$ In February $2024,$ a further $$10,000$ of these cards is redeemed for merchandise with a cost of $$8,000.$ The company uses a perpetual inventory system and has a February $28$ year end.

$($a$)$

Prepare the journal entry needed for December $2023.($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List debit entry before credit entry.$)$

Date

Account Titles and Explanation

Debit

Credit

December, $2023$