Question
ABC Auditor has agreed to perform an inventory count for XYZ on 12/31/Y1, but will allow them to pay over time. XYZs normal borrowing rate
ABC Auditor has agreed to perform an inventory count for XYZ on 12/31/Y1, but will allow them to pay over time.
XYZs normal borrowing rate is 6%.
ABC will require XYZ to pay a down payment of $15,000 at 12/31/Y1 and the remainder in the form of a $35,000 note, at 14% interest, due $12/31/Y6. Interest will be due semi-annually.
Find the following:
1. Service Revenue for 12/31/Y1: $
2. How much Interest Revenue was recorded year to date at 12/31/Y3:
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Managerial Accounting
Authors: John Wild, Ken Shaw
5th edition
978-1259176494, 1259176495, 978-1259347641, 1259347648, 978-0078025600
