Krypton Foods Distributes Coupons to Consumers Which May Be Presented

Krypton Foods distributes coupons to consumers which may be presented, on or before a stated expiry date, to grocery stores for discounts on certain Krypton products. The stores are reimbursed when they send the coupons in to Krypton. In Krypton's experience, only about 50% of these coupons are redeemed. During 2020, Krypton issued two separate series of coupons as follows:

$\begin{array}{ll}\text{} & \quad \quad \quad\quad \quad \quad\quad \quad\quad \quad \quad\quad \quad \quad\quad \quad \quad\quad\quad \quad \quad \quad \quad & \\\text{ } &\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad Coupon \quad \quad\quad \quad \text{ Amounts Reimbursed } & \\ \text{ \(\underline{\text{ Issued On }}\) } & \ \quad \text{ \(\underline{\text{ Total Value }}\) } \quad\quad\quad \quad \text{\(\underline{\text{ Expiry Date }}\) } \quad\quad \quad\quad \text{\(\underline{\text{ as of Dec 31/20 }}\) } & \\ \text{Jan 1/20 } & \quad \quad \text{\$250,000 } \quad \quad \quad \quad \quad\quad \text{\ Jun 30/20} \quad \quad\quad \quad \quad \quad\quad \text{\$18,000 } \quad\quad \quad \quad \quad \quad \\ \text{Jul 1/20} & \quad \quad \text{\ 360,000 } \quad \quad \quad \quad \quad\quad \text{\ Dec 31/20 } \quad \quad \quad \quad \quad\quad \text{\$ 150,000} \quad\quad \quad \quad \quad \quad \\ \end{array}$


Krypton's only journal entries for 2020 recorded debits to Premium Expense, and credits to Cash of $ 268,000. Their December 31, 2020 statement of financial position should include a Estimated Liability for Premiums of

A) $ 0.
B) $ 30,000.
C) $ 62,000.
D) $ 180,000.