1. 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?
2. Net receivable of 75,000 is recognized on the date of sale.
3. Net receivable of 50,000 is recognized upon full payment of the total price.
4. The 20,000 difference between the cash price and installment price is recognized as interest income on the date of sale.
5. Net receivable of 50,000 is recognized on the date of sale.