Cobb Department Store sells gift certificates redeemable only when merchandise is purchased. These gift certificates have no expiration date. Upon redemption or expiration, the entity recognizes the...

Extracted text: Cobb Department Store sells gift certificates redeemable only when merchandise is purchased. These gift certificates have no expiration date. Upon redemption or expiration, the entity recognizes the unearned revenue as realized. Information for the current year is as follows: Unearned revenue, January 1, 2013 Gift certificates sold 650,000 2,250,000 1,950,000 100,000 Gift certificates redeemed Gift certificates expected not to be redeemed Cost of goods sold 60% On December 31, 2013, what amount should be reported as unearned revenue?