Thanks AileneA

When I press New in Chart of Accounts, I see something different from what you described. I don't see Other Current Liabilities in Account Type. I only see Current Liabilities. So I choose Current Liabilities instead. Under it, there is Detail Type and from there I chose Other current liabilities. Then I gave it a name of Gift Card Liability. I didn't see Tax from section dropdown. (Not sure why Trust Accounts - Liabilities should be chosen as my corporate structure is not a trust.)

Also, I don't think I should create a sales receipt because the gift cards were not sold. They were given as gifts so there was no corresponding revenue/income. I'm thinking of using Gift Card and Donations instead so it can be reflected as an expense rather than income.