4. On December 31, 2021, a company sells goods to a customer, accepting $1,500 immediate...
80.2K
Verified Solution
Link Copied!
Question
Accounting
4. On December 31, 2021, a company sells goods to a customer, accepting $1,500 immediate cash payment and a 5-year, $15,000 note bearing 4% annual interest in exchange for the goods. The market rate of interest for a note of similar risk is 6%. What amount does the company record as sales revenue on December 31, 2021? a. $11,209 b. $12,709 c. $13,736 d. $15,236
5. Using the information from question 4, how much interest income will the company recognize for this note on the December 31, 2023 income statement? a. $558 b. $802 c. $838 d. $1,438
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
