During the year, L&M Leather Goods sold 1,040,000 reversible belts under a new sales promotional program. Each belt carried one rebate certificate which entitles the customer to a $3.70 cash refund when the rebate is submitted for redemption. L&M estimates that 77% of the rebates will be redeemed. 496,000 rebates had been submitted for redemption during the year. At December 31, L&M should report a liability for unredeemed rebate certificates of: Multiple Choice $2,962,960. $1,835,200. $800,800. $1,127,760.