Question: Pie Co. uses the installment sales method to recognize revenue. Customers pay the installment notes in twenty-four equal monthly amounts, which include 12% interest. What

Pie Co. uses the installment sales method to recognize revenue. Customers pay the installment notes in twenty-four equal monthly amounts, which include 12% interest. What is an installment 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%.

d. Less than the present value of the remaining monthly payments discounted at 12%.

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