Peleton has the following pricing options:

-Bike Basics Package (bike + membership): Bike $1,500 plus membership $80 per months for 1 year.

-Bike without membership $2,000

-Membership without bike purchase, $100 per mo for 1 year.

-Cost of inventory per bike: $1,000

-Cost of membership per member per month: $2

On Nov 1, 2020. Peloton sold 1,000 basic packages. Bike price was paid in cash upon order and bikes were delivered immediately. Memberhip fees are charged at the end of each month. How much sales revenue would be recognized in Nov 2020 with regard to this package sale?

A. $1,537,500

B. $2,000,000

C. $2.460.000

What would be the balance of deferred revenue at the end of November 2020?

A. $768,750

B. $845,625

C. $995,625