7. The refund reserve amount for Groupon as of December 31, 2011, was $67.45 million, and on March 31, 2012, had increased to $81.56 million. Assume that the accrued expense for refund reserve was $100 million for the first quarter of 2012.

a. How much refund was issued in 2012?

b. Explain why the expense recorded in the first quarter does not equal the amount paid during the quarter.