Value Dealership Inc. markets and sells vehicles to retail customers. Along with a new vehicle purchase, a customer will receive a free annual maintenance contract for one year from the date of purchase. The standalone selling price of a vehicle is $30,000 and the standalone selling price for the annual maintenance contract is $500. During October 2020, Value Dealership Inc. sold 30 vehicles for $30,250 per vehicle, each with a free annual maintenance contract. Which of the following statements is TRUE?

1. Value Dealership will record Sales Revenue of $30,000 and Service Revenue of $500
2. Value Dealership will record Sales Revenue of $30,000 and Service Revenue of $250
3. Value Dealership will record Sales Revenue of $30,250
4. Value Dealership will record Sales Revenue of $29,754 and Service Revenue of $496