Sunland Company, a company who maintains its accounting records using IFRS, manufactures furniture. Sunland sells an...
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Sunland Company, a company who maintains its accounting records using IFRS, manufactures furniture. Sunland sells an order to Save-A Lot Furniture in exchange for a zero-interest-bearing $96000 note due from the customer in two years. Since there is no stated interest rate on the note, the controller uses the current market rate of 11% to derive the present value. Based on this information and the incorporation of the time value of money, which of the following would be recorded by Sunland to recognize this sale? O Acredit to Sales Revenue for $96000. O A debit to Notes Receivable for $77916. O A credit to Notes Receivable for $77916. O A debit to Discount on Notes Receivable for $10560. Sunland Company, a company who maintains its accounting records using IFRS, manufactures furniture. Sunland sells an order to Save-A Lot Furniture in exchange for a zero-interest-bearing $96000 note due from the customer in two years. Since there is no stated interest rate on the note, the controller uses the current market rate of 11% to derive the present value. Based on this information and the incorporation of the time value of money, which of the following would be recorded by Sunland to recognize this sale? O Acredit to Sales Revenue for $96000. O A debit to Notes Receivable for $77916. O A credit to Notes Receivable for $77916. O A debit to Discount on Notes Receivable for $10560.
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The Notes is Receivable after 2 years that means the current ... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Posted Date:
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