On January 1, 2020, Savage Company sold goods to another entity. The buyer signed a noninterest-bearing...

 

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On January 1, 2020, Savage Company sold goods to another entity. The buyer signed a noninterest-bearing note requiring payment of P 600,000 annually for seven years. The first payment was made on January 1, 2020. The prevailing rate of interest for this type of note at date of issuance was 10%. (use 2 decimal places in computing the present value factor e.g. 4.36) What amount should be reported as sales revenue? On January 1, 2020, Savage Company sold goods to another entity. The buyer signed a noninterest-bearing note requiring payment of P 600,000 annually for seven years. The first payment was made on January 1, 2020. The prevailing rate of interest for this type of note at date of issuance was 10%. (use 2 decimal places in computing the present value factor e.g. 4.36) What amount should be reported as sales revenue?

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To determine the amount that should be reported as sales revenue we need to calculate the present va... View the full answer