1. On January 1, 2016, Ott Co. sold goods to Flynn Company. Flynn signed a zero-interest-bearing note requiring payment of $150,000 annually for seven years. The first payment was made on January 1, 2016. The prevailing rate of interest for this type of note at date of issuance was 10%. Information on present value factors is as follows:

Present Value Present Value of Ordinary Period of 1 at 10% Annuity of 1 at 10% 6 .5645 4.3553 7 .5132 4.8684

What is the amount of sales revenue Ott should record in January 2016?

Please show your calculation.