During the current year, Jolly Company offered a P20 cash rebate coupon to customers who purchased one of its new line of products. The entity sold 10,000 of these products during the current year. By year-end, 7,600 of the rebates had been claimed and 7,100 had been paid. The historical experience with such rebates indicated that 85% of customers claim the rebates.

What amount should be reported as rebate expense for the current year?