Background for the question ABC Auditor has agreed to perform an inventory count for XYZ on 12 31 Y1, but will allow them to pay over time They are considering several different note options below XYZs normal borrowing rate is 6 The pvoaf ( present value factor of an ordinary annuity) for 5 is provided below For all other factors use the PV tables in your book, do not round factors Period Interest 36 32 8710 48 42 5803 60 51 7256 1 ABC will require XYZ to pay a down payment of $10,000 at 12 31 Y1 and the remainder in the form of a $30,000 note, at 8 interest, due $12 31 Y6 Interest will be due semi annually a) What is Service Revenue at 12 31 Y1 b) What is Interest Revenue at 12 31 Y3

Question

Background for the question  ABC Auditor has agreed to perform an inventory count for XYZ on 12 31 Y1, but will allow them to pay over time  They are considering several different note options below  XYZs normal borrowing rate is 6   The pvoaf ( present value factor of an ordinary annuity) for  5  is provided below  For all other factors use the PV tables in your book, do not round factors  Period Interest 36 32 8710 48 42 5803 60 51 7256 1  ABC will require XYZ to pay a down payment of $10,000 at 12 31 Y1 and the remainder in the form of a $30,000 note, at 8  interest, due $12 31 Y6  Interest will be due semi annually  a) What is Service Revenue at 12 31 Y1  b) What is Interest Revenue at 12 31 Y3

Accepted Answer

The Answer is in the image, click to view ...

Question

Background for the question: ABC Auditor has agreed to perform an inventory count for XYZ on 12/31/Y1, but will allow them to pay over time.

Step by Step Solution

Step: 1

Get Instant Access with AI-Powered Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question

Period	Interest
36	32.8710
48	42.5803
60	51.7256