On January 2, 2017, Adani Inc. sells goods to Geo Company in exchange for a zero-interest-bearing note

Question:

On January 2, 2017, Adani Inc. sells goods to Geo Company in exchange for a zero-interest-bearing note with a 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). Assume that the company chooses to reflect the interest component. Prepare the journal entry to record this transaction on January 2, 2017. How much total revenue should be recognized in 2017?
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...