Gerughty operates as a retailer of pools and spas. Some customers pick out hot tubs and place deposits with Gerughty to set the hot tubs aside for future delivery. The balance is due upon delivery of the hot tub, at which time, Gerughty satisfied its performance obligation and revenue is recognized. The average gross margin on the hot tubs is 75% of sales. The following pertinent data were taken from Gerughty's December 31, 2020, unadjusted trial balance: Regular sales $5,000,000 Prepayments received from customers $2,000,000 An analysis of the customer prepayments revealed that $1,200,000 was received for hot tubs delivered to customers during 2020. In Gerughty's December 31, 2020, balance sheet, deferred revenue would be O A) $2,000,000 OB) $1,500,000 C) $1,200,000 OD) $ 800,000