Gamestop Corp. said the following about its gift card sales in its most recent (2019) annual report:

"We establish a liability upon the issuance of merchandise credits and the sale of gift cards. Revenue is subsequently recognized when the credits and gift cards are redeemed."

When Gamestop sells a gift card to a customer, what is the impact on Gamestop's financial statements?

a. Cash increases and the Income Statement increases

b. Cash increases and Inventory decreases

c. Cash increases and Liabilities increase

d. Cash decreases and the Income Statement decreases

e. No effect because the customer has not yet used the gift card