The following is on Peloton's sale in 2020:

Bike Basics Package (bike + membership)
Bike	$ 3,000
membership per months for 1 yr	$ 60
Total package price	$ 3,720
bike without membership	$ 4,000
membership without bike purchase per mo for 1yr	$ 100

**Bike price is paid in cash upon order

**Membership fee is charged at the end of each month

**Bikes are delivered immediately

Part a) Peloton sold 1000 packages on Dec 1, 2020. How much sales revenue would be recognized in Dec 2020 with regard to this package sale?

(a) $3,000,000

(b) $2,933,077

(c) $2,861,538

(d) $3,720,000

answer (b)

Part b) (Continued) What is the ending balance of deferred revenue at the end of December with regard to this package sale?

(a) $786,923

(b) $858,462

(c) $720,000

(d) $660,000

answer: (a)

***I have the answers, but I do not understand how to get to them. Please explain how to get these answers and show work if possible.