On January 1, 2024, TrueTech enters into a contract with GameStop Stores to deliver four $240 Tri-Box modules that have a combined fair value of $960. Prepayment Case: GameStop pays TrueTech $873 on January 1, 2024, and True Tech agrees to deliver the modules on December 31, 2024. Because GameStop pays in advance of delivery, we view TrueTech as borrowing money from GameStop, so TrueTech will incur interest expense. Receivable Case: TrueTech delivers the modules on January 1, 2024, and GameStop agrees to pay TrueTech $1,056 on December 31, 2024. Because TrueTech delivers the modules in advance of payment, we view TrueTech as lending money to GameStop, so True Tech will earn interest revenue. In both cases, TrueTech views the financing component to be significant, and the applicable interest rate is 10%. In the following table we compare True Tech's accounting for the contract for the two cases (ignoring the entry for cost of goods sold): Prepayment (collection before delivery) January 1, 2024 When collection