On January 1, a utility provider contracts with a coal supplier to deliver 120,000 tons of coal per year for $4.800 000. The coal supplier uses the percentage-of-completion method for recognizing revenue. The utility providers payment schedule is to be $400,000 on the last day of each month for the entire 12 months or the year.

The utility provider requests that 10,000 tons be delivered for each of the first 6 months: 15.000 tons for July. August, and September each; and 5,000 tons for October, November, and December each.

How much revenue should the coal supplier recognize for the month of September?

$60.000

$400,000

$600,000

$3,600,000