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An entity sells goods either on cash basis or on 6-month installment basis. On January 1, 20x1, goods with cash price of 50,000 were sold
- An entity sells goods either on cash basis or on 6-month installment basis. On January 1, 20x1, goods with cash price of 50,000 were sold at an installment price of 75,000. Which of the following statements is correct?
- Net receivable of 75,000 is recognized on the date of sale.
- Net receivable of 50,000 is recognized upon full payment of the total price.
- The 20,000 difference between the cash price and installment price is recognized as interest income on the date of sale.
- Net receivable of 50,000 is recognized on the date of sale.
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