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During 20X1, Color Run Company recorded the following sales in its income statement. The sales...

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Accounting

During 20X1, Color Run Company recorded the following sales in its income statement. The sales amount is incorrect as one sale (on January 1,20X1) was a result of a financed sale of equipment. The accountant inappropriately recorded the sale and note receivable at the face value and coupon rate.
Incorrect Sales amount on the income statement $3,621,900
Note receivable information:
Notes receivable (Face value)850,000
Coupon rate 1.00%
Market rate 5.00%
Term 6 years
The note is due in equal annual payments of principle and interest.
What is the correct amount of total sales that should be reported on the income statement for 20X1?
Multiple Choice
3,621,900
3,516,332
3,727,468
4,366,332b
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