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Johnson & Sons Corporation offers a cash rebate of $1 on each $5 package of batteries sold during 2021. Historically, 10% of customers mail in

Johnson & Sons Corporation offers a cash rebate of $1 on each $5 package of batteries sold during 2021. Historically, 10% of customers mail in the rebate form. During 2021, 1,000,000 packages of batteries are sold, and 40,000 $1 rebates are mailed to customers. What is the rebate expense and liability, respectively, shown on the 2021 financial statements dated December 31?

a.

$100,000; $60,000

b.

$60,000; $60,000

c.

$40,000; $60,000

d.

$100,000; $100,000

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