During 2021, Deluxe Leather Goods issued 820,000 coupons which entitles the customer to a $4.60 cash refund when the coupon is submitted at the time of any future purchase. Deluxe estimates that 75% of the coupons will be redeemed. 324,000 coupons had been processed during 2021. Deluxe recognizes coupon expense in the period coupons are issued. At December 31, 2021, Deluxe should report a liability for unredeemed coupons of:

Multiple Choice

• $615,000.

• $1,711,200.

• $2,281,600.

• $1,338,600.