On July 1, 2019, SEK Company sold goods to Grant Company for $900,000 in exchange for a

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On July 1, 2019, SEK Company sold goods to Grant Company for $900,000 in exchange for a 4-year, zero-interest-bearing note with a face amount of $1,416,163. The goods have a cost on SEK's books of $590,000.

How much revenue should it report related to this transaction on December 31, 2019?

Use the following journal entries and explain the calculation behind it:

Dr. Notes Receivable

Cr. Interest Revenue

Related Book For answer-question

Intermediate Accounting IFRS

ISBN: 978-1119372936

3rd edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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Posted Date: Nov 08, 2022 07:15 AM

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On July 1, 2019, SEK Company sold goods to Grant Company for $900,000 in exchange for a

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Answer The revenue reported on December 31 2019 should be 675000 The calculation behind thi... View the full answer

Intermediate Accounting IFRS

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