Hi, I am having trouble with this. It says I got 0.5 out of 1 point right, however it did not clarify which question I got wrong.

ABC Auditor has agreed to perform an inventory count for XYZ on 12/31/Y1, but will allow them to pay over time. Before they agree with the note terms, they are considering several options.

XYZs normal borrowing rate is 6%. For each option determine service revenue at 12/31/Y1 and interest revenue at 12/31/Y3, and answer the additional questions below. The PV of an ordinary annuity table for .5% is provided below. For all other factors use the PV tables in your book - do not round factors in your initial calculation. After you've used the factor, round all answers to whole dollars (including service revenue, interest revenue, and payments for each year in your calculation).

Information specific to this question: ABC will require XYZ to pay a down payment of $15,000 at 12/31/Y1 and the remainder in the form of a $35,000 note, at 14% interest, due $12/31/Y6. Interest will be due semi-annually. Calculate:

Service Revenue for 12/31/Y1: $ 61942

How much Interest Revenue was recorded year to date at 12/31/Y3?: $ 5442

My work:

I know that it is an unreasonable lump sum.

TVM

n=10 (because it is semi annual)

i= 3% (this is the 6% market rate for semi annual)

PV= SOLVED which is 46942.28

PMT= 2450 (FV*CR=35000*7%)

FV=35000

12/31/Y1: Journal Entry

Note receivable 35000

Down Payment 15000

Premium 11942.3 (PLUG)

Service Revenue 61942.3 (I added 46942.28+15000 down pmt)

CVnew=CVold+ interest - cash

42584=46942.28+X-9800

X=5441.72 is my accumulated interest for 12/23/Y3

I do not if service revenue or interest is wrong.