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5. On December 31, 2019, Woods Co. sold goods to a customer and agreed to accept a 3- year, $59,000 noninterest-bearing promissory note in return.

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5. On December 31, 2019, Woods Co. sold goods to a customer and agreed to accept a 3- year, $59,000 noninterest-bearing promissory note in return. The note requires the customer to make a single $59,000 payment on December 31, 2022 to settle its obligation. The relevant market rate of interest on the sale date is 6 %. How much sales revenue must Woods recognize from the December 31, 2019 transaction? $9,462 $59,000. $49,538. C. D. A. $0. . On December 1, 2019, Maye Co. made a $21,000 sale on account, with credit terms of 2/10, n/30. The customer failed to take advantage of the cash discount. Maye received payment in full on December 30, 2019. Comparing the gross and net methods of accounting for cash discounts, how much sales revenue would Maye report in its 2019 income statements under each method? 6. Gross Method Net Method $20,580 $21,000 $20,580 $21,000 $20,5 $20,580 $21,000 $21,000 A. . C. D. Berry Co. uses a periodic inventory system. The following information is available from the company's accounts at December 31, 2019: 7. Inventory Purchases Purchase returns and allowances 116,000 562,000 49,000 The company's inventory at December 31, 2019 as determined by a physical count is $127,500. As part of the adjusting entry required at December 31, 2019 in a periodic system, Berry must: Debit the Cost of Goods Sold account for $501,500. Debit the Cost of Goods Sold account for $513,000. Credit the Cost of Goods Sold account for $524,500. Credit the Cost of Goods Sold account for $550,500. . B. C. D. On January 1, 2019, Meeks Co. received a promissory note with a contract interest rate less than the relevant market interest rate. Meeks did not elect the fair value option for this note. In its December 31, 2019 balance sheet, Meeks must report the note receivable asset at the amount of: 8. . . face value. face value plus the unamortized discount. present value. face value less the unamortized discount. C. D

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