Kleer-N-KleenRefuse Company, Inc.,are a newly set up firm which specialize in clearing up space debris created by the launching of space craft and satellites.It issues to commercial customers large metalic toters with powerful suction capabilities.It requires its customers todeposit $4,000for each toter used for trash collection and charges this amount when delivered.Upon the toters being returned, the amount is refunded.If a customer cancels the trash collection contract, but fails to return the toter, the deposited is forfeited by the customer.The firm began the current year with40existing customers and added85new customersduring the year.14customers cancelled their contracts and returned the toters which had been issued to them.OnDecember 31,the company held92trash collection contracts.The remaining contracts represented the toters not returned by customers cancelling their respective contracts.Which of the following would be included in the journal entry to record the forfeiture of the deposits?

a.

Debitto Deposit Liability - $56,000

b.

Debitto Deposit Liability - $160,000

c.

Creditto Deposit Liability - $76,000

d.

Creditto Deposit Liability - $340,000

e.

None of the above answers.