Harry's Inc. issued a four-year, $75,000, non-interest-bearing note to a customer on January 1, Year 6. Harry also agrees to sell inventory to the customer at reduced rates over a five-year period. Sales are to be evenly spread over the five-year period. Harry's incremental interest rate is 8%, and the present value of the note is $55,125. What is Harry's sales revenue connected with the note in Year 8? 

a. There is no sales revenue on a note payable. 

b. $15,000 

c. $3,975 

d. $4,974

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The correct answer is c ... View the full answer