Illustrative 8: On January 1, 2020, Savage Company sold goods to another entity. The buyer signed a noninterest-bearing note requiring payment of P 600,000 annually for seven years. The first payment was made on January 1, 2020. The prevailing rate of interest for this type of note at date of issuance was 10%. (use 2 decimal places in computing the present value factor e.g. 4.36) What amount should be reported as sales revenue? b. 3,216,000 b. 2,922,000 C. 2,616,000 d. 2,142,000 Pv factor: 5.36 Dr cash 600,000 Dr NR 3,600,000 Or sales rev 3,216,000 Or unearned int inc 984,000