Question
FRS Multiple Choice Question 04 Concord Corporation, a company who maintains its accounting records using IFRS, manufactures furniture. Concord sells an order to Save-A Lot
FRS Multiple Choice Question 04
Concord Corporation, a company who maintains its accounting records using IFRS, manufactures furniture. Concord sells an order to Save-A Lot Furniture in exchange for a zero-interest-bearing $92000 note due from the customer in two years. Since there is no stated interest rate on the note, the controller uses the current market rate of 6% to derive the present value. Based on this information and the incorporation of the time value of money, which of the following would be recorded by Concord to recognize this sale?
A credit to Notes Receivable for $81880.
A debit to Notes Receivable for $81880.
A credit to Sales Revenue for $92000.
A debit to Discount on Notes Receivable for $5520.
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Management Accounting In A Dynamic Environment
Authors: Cheryl S McWatters, Jerold L Zimmerman
1st Edition
0415839025, 9780415839020
