Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a customer signs a noninterest-bearing note, promi

A customer signs a noninterest-bearing note, promising to pay the company $11,664 in two years....

60.1K

Verified Solution

Question

Accounting

A customer signs a noninterest-bearing note, promising to pay the company $11,664 in two years. The payment amount is based on an annual interest rate of 8%, which the company believes is appropriate, resulting in the present value of the note of $11,664 0.85734 = $10,000. Which amount should the company record as sales revenue from this transaction to be in accordance with generally accepted accounting principles (GAAP)?

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!
Become a Member

Other questions asked by students

Q

MATCHING: debt-to-value ratio    DO AS MANY AS leveraged recapitalization YOU WISH American options unlevered equity Levered equity at-the-money call option hedging European options capital structure financial option conservation...

Finance
Q

a) Calculate mean duration and standard deviation for all the activities using the beta distribution. [4pts]    b)...

Statistics
Q

The Environment Bureau of HKSAR Government has recently proposed legislation for the proper management of waste...

Civil Engineering
Q

1) find the solution t the non-homogenous DE y''-16y=3e5x , y(0)=1 , y'(0)=2 2)find the solution to...

Advance Math
Q

Identify the tasks performed by pharmacytechnicians at the In Window.Process prescriptions, enter data, counsel patientsManage...

Biology
Q

Which sentence describes the speciation of three distinct zebra species from a common ancestor OA...

Biology
Q

The contingency table below represents the responses to a first day survey of MATH 153...

Statistics
Q

How large should n be to guarantee that the Trapezoidal Rule approximation to 13 0...

Calculus
Q

Problem F (24 points) -PROBLEMS- UCTIONS: Solve the following...

Accounting
Q

Continuing Problem Rocall the following details about the two employees hired in November CPP is...

Accounting
Q

write about how management accountants can best support management decision making in defining an organizations...

Accounting
Q

A stock has a beta of 1.19 and an expected return of 12.4 percent. A...

Finance