Georgia's Salon the Salon Sells $50,000 of Gift Cards in May

Georgia's Salon The salon sells $50,000 of gift cards in May 2012.These gift cards may be used anytime before their expiration on May 31,2013.
-Refer to Georgia's Salon.On May 31,2013,all but $1,500 of the gift cards had been redeemed for salon services.What is the impact on the accounting equation of recording the expired gift cards?

A) Assets and liabilities increase.
B) Assets and liabilities decrease.
C) Liabilities increase and stockholders' equity decreases.
D) Liabilities decrease and stockholders' equity increases.