Pie Co. uses the installment sales method to recognize revenue. Customers pay theinstallment notes in 24 equal monthly amounts, which include 12% interest. What is aninstallment note's receivable balance six months after the sale?A.75% of the original sales price.B.Less than 75% of the original sales price.C.The present value of the remaining monthly payments discounted at 12%.

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Under the installment sales method the revenue recognition is spread over the period of the installm... View the full answer