Fuller Food Company distributes coupons which may be presented (on or before a stated expiration date) to grocers. The grocers are reimbursed when they send the coupons to Fuller. In Fuller'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 Fuller receives it. During 2012 Fuller issued two separate series of coupons as follows: The December 31, 2012 balance sheet should indicate a liability for unredeemed coupons of:

Select one:

a. $0

b. $14,000

c. $110,000

d. $124,000

e. $360,000