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18) On January 1, 2020, Bab Ruth Co. sold goods to Willie Mays Company. Mays signed a zero-interest-bearing note requiring payment of $200,000 annually for
18) On January 1, 2020, Bab Ruth Co. sold goods to Willie Mays Company. Mays signed a zero-interest-bearing note requiring payment of $200,000 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%. Babe Ruth should record sales revenue in January 2020 of
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$1,071,052.
$973,680.
$871,060.
$714,000.
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