During the year, L&M Leather Goods sold 1,130,000 reversible belts under a new sales promotional program. Each belt carried one rebate certificate which entitles the customer to a $4.50 cash refund when the rebate is submitted for redemption. L&M estimates that 79% of the rebates will be redeemed. 497,000 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 $892,700. $1,780,650. $2,236,500 $4,017,150