Sweet Acacia Ltd., an equipment manufacturer, sold and delivered a piece of equipment to a...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Sweet Acacia Ltd., an equipment manufacturer, sold and delivered a piece of equipment to a buyer for $92,000, with 50% payable in one year and the remaining 50% payable in two years from the date of sale. Sweet Acacia estimates that the interest rate for a similar financing arrangement would be 12%. Calculate the amount of revenue that Sweet Acacia should recognize on the date of sale. (Round discount factor to 5 decimals and final answer to 2 decimal places, e.g. 5,275.25.) Click here to view the factor table PRESENT VALUE OF 1.
Revenue to be recognized on the date of sale: $____________
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!
