Caribou County Service Station started a customer loyalty program at the beginning of 2023 in which customers making cash purchases of gasoline at the gas bar are issued rewards in the form of coupons. For each litre of gasoline purchased, the customer gets a coupon for 2.5 cents that can be redeemed in the service department toward such things as oil changes or repairs. The coupons have no expiry date. Caribou County Service Station began selling gift cards to be redeemed for gas, in 2024 that do not have expiry dates.
The following are selected transactions in 2023 and 2024:
1. In 2023, the gas bar sold 750,000 litres of gasoline resulting in gas sales of $1,050,000. Service department coupons were issued with these sales. The expected redemption rate for the service coupons is 70%.
2. In 2023, customers redeemed $5,950 of the coupons in the service department.
3. In 2024, the gas bar sold 810,000 litres of gasoline, resulting in gas sales of $1,255,000. Service department coupons were issued with these sales. The expected redemption rate for the service coupons mis 70%.
4. In 2024, customers redeemed $9,500 of the coupons in the service department.
5. In 2024, customers purchased $3,950 of gift cards, and $1,500 revenue from gift card sales was to be recorded by the end of the year.

Instructions
a. Indicate if the following items will increase, decrease, or have no effect on each of revenues, expenses, and profit:
1. Issuing coupons when sales are made
2. Redeeming coupons
3. Issuing gift cards
4. Redeeming gift cards
b. Record the above transactions.
c. What balances will be included in current liabilities at December 31, 2023 and 2024, regarding the customer loyalty program and gift cards?

What factors should management consider in determining if current liabilities are correctly valued at December 31, 2024?