Question
A company provided a special promotion of zero-interest financing for 3 years on its products. The company received a $396,000 zero-interest- bearing note on
A company provided a special promotion of zero-interest financing for 3 years on its products. The company received a $396,000 zero-interest- bearing note on January 1, 2020. The company imputes an 8% interest rate on this zero-interest note transaction. What is the total amount of revenue to be recognized in 2020? (Add sales revenue and interest revenue.) (Present value factor for 8% and 3 years, single sum is 0.79. Please do not use your own present value tables or financial calculator.) (Please do not round your answer in any part of the computation.)
Step by Step Solution
3.34 Rating (148 Votes )
There are 3 Steps involved in it
Step: 1
Sales RevenueAmount to be r...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Intermediate Accounting IFRS
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
4th Edition
1119607515, 978-1119607519
Students also viewed these Accounting questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App