Question
A furniture retailer sells goods to a customer for 50,000 on 1 January 2019. Delivery will take place immediately and the company has given the
A furniture retailer sells goods to a customer for 50,000 on 1 January 2019. Delivery will take place immediately and the company has given the customer an interest-free credit period of 48 months. The discount rate is 8%.
How much revenue is recognized for the year-end 31 Dec 2019?
A - 46,296
B - 39,691
C - 50,000
D - 36,751
Please provide step by step solution.
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
4th edition
978-0073369709, 73369705, 78025370, 978-0077444846, 77444841, 978-0078025372
