Skidmore Company sold merchandise on July 1, 2007 to Joseph Company, accepting a $100,000 down payment and a 8% note payable for the balance of $400,000. The cost of the merchandise to Skidmore was $350,000. The terms of the contract include a right by the Joseph Company to cancel the contract anytime in the next 12 months. Calculate sales revenue for 2007 recorded on this sale, assuming Skidmore elects to use the deposit method.