However, payment of the contract price of $650,000 will not occur until three years later. The interest rate charged in similar arrangements in the industry is 10%. What amount should BBF record as the sale in the journal?

Record the sale in the journal: Date of Delivery Accounts Debit Credit Accounts Receivable 488,345 Sales Revenue 488,345 How much interest will be earned in Year 1? How much interest will be earned in Year 2? How much interest will be earned in Year 3? How much interest revenue will Billy's Balloon Factory recognize (in total) over the three-year period? 161,655