Agracon Foods Distributes Coupons to Consumers Which May Be Presented

Agracon Foods distributes coupons to consumers which may be presented, on or before a stated expiry date, to grocery stores for discounts on certain Agracon products. The stores are reimbursed when they send the coupons to Agracon. In Agracon's experience, only about 50% of these coupons are redeemed. During 2011, Argracon issued two separate series of coupons as follows: $$\begin{array} { | l | r | l | r | } \hline&&& \text { Amounts Reimbursed as of }\\ \text { Issued On } & \text { Total Value } & \text { Coupon Expiry Date } &\operatorname{Dec} 3120X1\\\ \\ \hline \text { Jan 120X1 } & \$ 250,000 & \text { Jun 30 20X1 } & \$ 118,000 \\\hline \text { Oct 120X1 } & \$ 360,000 & \text { Mar 3120X2 } &\$150,000\\\hline\end{array}$$ Agracon's only journal entries for 20X1 recorded debits to coupon expense, and credits to cash of $268,000. Their December 31, 20X1 balance sheet should include a provision for unredeemed coupons of:

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