$11$

A company received two one$-$year notes in payment for merchandise sold. One note had a face amount of $$6,000$ and was interest$-$bearing at an annual rate of $18$ percent. The other note had a face amount of $$7,080$ and was non$-$interestbearing $($its implied interest rate was $18$ percent$).$

Multiple Choice

The total amount of casis ultimately to be received will be more for the interest$-$bearing note.

Both notes will cause the same total interest to be recognized.

The amount of interest revenue, which should be recognized, is more for the interest$-$bearing note.

$$ The amount, which should be credited to sales revenue, is more for the non$-$interest$-$bearing note.