On January 1, 2020, Toto Company sold goods to Snow Company. Snow signed a noninterest-bearing note requiring payment of ₱600,000 annually for seven years. The first payment was made on January 1, 2020. The prevailing rate of interest for this type of note at the date of issuance was 10%. Information on present value factors is as follows: Period Present value of 1 at 10% Present value of ordinary annuity of 1 at 10% 6 .56 4.36 7 .51 4.87 What amount should be recorded as sales revenue in January 2020?
On January 1, 2020, Toto Company sold goods to Snow Company. Snow signed a noninterest-bearing note requiring payment of ₱600,000 annually for seven years. The first payment was made on January 1, 2020. The prevailing rate of interest for this type of note at the date of issuance was 10%. Information on present value factors is as follows: Period Present value of 1 at 10% Present value of ordinary annuity of 1 at 10% 6 .56 4.36 7 .51 4.87 What amount should be recorded as sales revenue in January 2020?
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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On January 1, 2020, Toto Company sold goods to Snow Company. Snow signed a noninterest-bearing note requiring payment of ₱600,000 annually for seven years. The first payment was made on January 1, 2020. The prevailing rate of interest for this type of note at the date of issuance was 10%. Information on present value factors is as follows:
|
Period |
Present value of 1 at 10% |
Present value of ordinary annuity of 1 at 10% |
| 6 |
.56 |
4.36 |
| 7 |
.51 |
4.87 |
What amount should be recorded as sales revenue in January 2020?
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