Final answer:
To record the sale of gift cards on January 1, create a journal entry in the Cash Receipts Journal with a debit to Cash and a credit to Gift Card Revenue.
Step-by-step explanation:
To record the sale of gift cards on January 1, you would create a journal entry in the Cash Receipts Journal. The journal entry would be:
- Debit: Cash
- Credit: Gift Card Revenue
This journal entry acknowledges the increase in cash from the sale of gift cards and recognizes the revenue earned from those sales.
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