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During 2016, Deluxe Leather Goods sold 823,000 reversible belts under a new sales promotional program. Each belt carried one coupon, which entitles the customer to

During 2016, Deluxe Leather Goods sold 823,000 reversible belts under a new sales promotional program. Each belt carried one coupon, which entitles the customer to a $5.70 cash rebate. Deluxe estimates that 74% of the coupons will be redeemed, even though only 384,000 coupons had been processed during 2016. At December 31, 2016, Deluxe should report a liability for unredeemed coupons of:

$1,851,702.

$1,282,614.

$2,502,300.

$609,020.

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