pls answer case a and case b

7. An entity enters into a contract with a customer to sell when the contract is signed. The price stated in the contract is equipment. Control of the equipment transfers to the customer CU1 million plus a five per cent contractual rate of interest payable in 60 monthly installments of P18,871. RA Case A In evaluating the discount rate in the contract that contains significant financing component, the entity observes that the fiya per cent contractual rate of interest reflects the rate that would be used in a separate financing transaction between the entity and its customer at contract inception (i.e., the contractual rate of interest of five per cent reflects the credit characteristics of the customer). the Requirement: Compute for the sale revenue to be recognized from the transaction above. Upo het Case B In evaluating the discount rate in the contract that contains a significant financing component, the entity observes that the five per cent contractual rate of interest is significantly lower than the 12 per cent interest rate that would be used in a separate financing transaction between the entity and its customer at contract inception (i.e., the contractual rate of interest of five not reflect the credit characteristics of the customer). per cent does waret Requirement: Compute for the sale revenue to be recognized from the transaction above