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On January 1, 2020, Coronado Industries sold goods to Wildhorse Co. Wildhorse signed a zero-interest-bearing note requiring payment of $238000 annually for seven years. The
On January 1, 2020, Coronado Industries sold goods to Wildhorse Co. Wildhorse signed a zero-interest-bearing note requiring payment of $238000 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%. Information on present value factors is as follows: Present Value of 1 at 10% Present Value of Ordinary Annuity of 1 at 10% Period 6 0.5645 4.3553 7 0.5132 4.8684 Coronado should record sales revenue in January 2020 of $1274547. O $1158679. O $1036561. O $850000
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