During the Year,L&M Leather Goods Sold 1,000,000 Reversible Belts Under

Multiple Choice

During the year,L&M Leather Goods sold 1,000,000 reversible belts under a new sales promotional program.Each belt carried one coupon,which entitles the customer to a $4.00 cash rebate.L&M estimates that 70% of the coupons will be redeemed,even though only 500,000 coupons had been processed during the year.At December 31,L&M should report a liability for unredeemed coupons of:

A) $ 700,000.
B) $ 800,000.
C) $1,000,000.
D) $2,800,000.