On January 1, 2020, Savage Company sold goods to another entity. The buyer signed a noninterest-bearing note requiring payment of P600,000 annually for seven years. The first payment was made on January 1, 2020. The prevailing rate of interest for this type of note at date of issuance was 10% Present value of ordinary annuity of 1 at 10% Periods Present value of 1 at 10% 6 .56 4.36 7 .51 4.87 What amount should be reported as sales revenue? A.3,216,000 O B.2,922,000 O C.2,616,000 O D.2,142,000
On January 1, 2020, Savage Company sold goods to another entity. The buyer signed a noninterest-bearing note requiring payment of P600,000 annually for seven years. The first payment was made on January 1, 2020. The prevailing rate of interest for this type of note at date of issuance was 10% Present value of ordinary annuity of 1 at 10% Periods Present value of 1 at 10% 6 .56 4.36 7 .51 4.87 What amount should be reported as sales revenue? A.3,216,000 O B.2,922,000 O C.2,616,000 O D.2,142,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 14RE: On January 1, 2019, Boater Company issues a 20,000 non-interest-bearing, 5-year note for equipment....
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