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Harrys Inc. issued a four-year, $76,000, non-interest-bearing note to a customer on January 1, 2020. Harry also agrees to sell inventory to the customer at
Harrys Inc. issued a four-year, $76,000, non-interest-bearing note to a customer on January 1, 2020. Harry also agrees to sell inventory to the customer at reduced rates over a five-year period. Sales are to be evenly spread over the five-year period. Harrys incremental interest rate is 8%, and the present value of the note is $55,125. Refer to Exhibit 14-16. What is Harrys sales revenue connected with the note in 2022? a. $3,975
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