On January 1, 2019, Carat Company agreed to sell a diamond to a customer at a special price of $5,000. Payment terms were $1,000 on January 1, 2019, and $1,000 each January 1 from 2020 to 2023. Carat normally charges 6% interest to its customers, but did not charge interest on this special sale.

Required:

How much revenue, and how much in accounts receivable, should Carat recognize on January 1, 2019?