During 2018, Deluxe Leather Goods Issued 800,000 Coupons Which Entitles

During 2018, Deluxe Leather Goods issued 800,000 coupons which entitles the customer to a $5.00 cash refund when the coupon is submitted at the time of any future purchase. Deluxe estimates that 70% of the coupons will be redeemed. 350,000 coupons had been processed during 2018. At December 31, 2018, Deluxe should report a liability for unredeemed coupons of:

A) $560,000.
B) $1,050,000.
C) $1,225,000.
D) $1,750,000.

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