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Flavor Food Company distributes to consumers coupons which may be presented (on or before a stated expiration date) to grocers for discounts on...

Flavor Food Company distributes to consumers coupons which may be presented (on or before a stated expiration date) to grocers for discounts on certain products of Flavor. The grocers are reimbursed when they send the coupons to Flavor. In Flavor's experience, 50% of such coupons are redeemed, and generally one month elapses between the date a grocer receives a coupon from a consumer and the date Flavor receives it. During 2018 Flavor issued two separate series of coupons as follows:

                              Consumer             Amount Disbursed

Issued On        Total Value             Expiration Date            as of 12/31/18

   1/1/18            $500,000                      6/30/18                     $236,000

   7/1/18              840,000                    12/31/18                       350,000

           The only journal entry recorded to date is: debit to coupon expense and credit to cash of $815,000. The December 31, 2018 balance sheet should include a liability for unredeemed coupons of:

a) $0.

b) $70,000.

c) $184,000.

d) $420,000.

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