During 2016,Deluxe Leather Goods Sold 800,000 Reversible Belts Under a New

During 2016,Deluxe Leather Goods sold 800,000 reversible belts under a new sales promotional program.Each belt carried one coupon,which entitles the customer to a $5.00 cash rebate.Deluxe estimates that 70% of the coupons will be redeemed,even though only 350,000 coupons had been processed during 2016.At December 31,2016,Deluxe should report a liability for unredeemed rebates of:

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

Correct Answer:

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