During the year, L&M Leather Goods sold 1,020,000 reversible belts under a new sales promotional program. Each belt carried one rebate certificate which entitles the customer to a $4.90 cash refund when the rebate is submitted for redemption. L&M estimates that 78% of the rebates will be redeemed. 493,000 rebates had been submitted for redemption during the year. At December 31, L&M should report a liability for unredeemed rebate certificates of: