Question: Determining Sales and Interest Revenue using Short - Term Note Receivable A one - year, $ 5 , 0 0 0 , 1 2 %

Determining Sales and Interest Revenue using Short-Term Note Receivable
A one-year, $5,000,12% note was received by Nadia Company for a credit sale. Assuming a market rate of 12%, determine the amount of (1) sales revenue recognized upon issuance of the note and (2) interest revenue recognized over the term of the note.

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