Assume Sentinel Corp

Multiple Choice

Assume Sentinel Corp., an equipment distributor, sells a piece of machinery with a list price of $700,000 to Arch Inc. Arch Inc. will pay $725,000 in one year. Sentinel Corp. normally sells this type of equipment for 80% of list price. How much should be recorded as revenue?

A) $560,000
B) $580,000
C) $700,000
D) $725,000