During 2021, Deluxe Leather Goods issued 838,000 coupons which entitles the customer to a $4.50 cash refund when the coupon is submitted at the time of any future purchase. Deluxe estimates that 73% of the coupons will be redeemed. 262,000 coupons had been processed during 2021. Deluxe recognizes coupon expense in the period coupons are issued. At December 31, 2021, Deluxe should report a liability for unredeemed coupons of:

a. $1,828,605.
b. $2,575,500.
c. $1,309,476.
d. $607,760.

James river jewelry is a small jewelry shop. while james river jewelry does sell typical jewelry purchased from jewelry vendors, including such items as rings, necklaces, earrings, and watches, it specializes in hard-to-find asian jewelry. although some asian jewelry is manufactured jewelry purchased from vendors in the same manner as the standard jewelry is obtained, many of the asian jewelry pieces are often unique single items purchased directly from the artisan who created the piece (the term manufactured would be an inappropriate description of these pieces). james river jewelry has a small but loyal clientele, and it wants to further increase customer loyalty by creating a frequent buyer program. in this program, after every 10 purchases, a customer will receive a credit equal to 50 percent of the average of his or her 10 most recent purchases. this credit must be applied to the next (or 11th) purchase.