Journal entries for coupons. Morrison's Cafeteria sells coupons that customers may use later to purchase meals. Each coupon book sells for S25 and has a face value of S30: that is. the customer can use the book to purchase meals with menu prices of S30. On January 1, redeemable unused coupons that Morrison's had sold for $4,000 were outstanding. Cash inflows during the next three months appear below:

January February March Cash-paying Customers $48,000 $48,500 $50,000 Sale of Coupon Books 2,100 2,200 2,400 Total Cash Receipts $50,100 $50,700 $52,400 Customers returned coupons with a discounted face value for meals as follows: January. $1,600;

February. $2,300; March $2,100.

a. Prepare journal entries for January. February, and March to reflect the above information.

b. What effect, if any. do the coupon sales and redemptions have on the liabilities on the March 31 balance sheet?