On January 2, 2014, Adani Inc. sells goods to Geo Company in exchange for a zero-interest-bearing note

Question:

On January 2, 2014, Adani Inc. sells goods to Geo Company in exchange for a zero-interest-bearing note with of $11,000, with payment due in 12 months. The fair value of the goods at the date of sale is $10,000 (cost $6,000). Prepare the journal entry to record this transaction on January 2, 2014. How much total revenue should be recognized in 2014?
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...