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During 2018, Deluxe Leather Goods issued 805,000 coupons which entitles the customer to a $5.10 cash refund when the coupon is submitted at the time of any future purchase. Deluxe estimates that 75% of the coupons will be redeemed. 275,000 coupons had been processed during 2018. At December 31, 2018, Deluxe should report a liability for unredeemed coupons of:
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