Question
On July 1, 2019, SEK Company sold goods to Grant Company for $900,000 in exchange for a 4-year, zero-interest-bearing note with a face amount of
On July 1, 2019, SEK Company sold goods to Grant Company for $900,000 in exchange for a 4-year, zero-interest-bearing note with a face amount of $1,416,163. The goods have a cost on SEK's books of $590,000.
How much revenue should it report related to this transaction on December 31, 2019?
Use the following journal entries and explain the calculation behind it:
Dr. Notes Receivable
Cr. Interest Revenue
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To solve this problem we need to recognize revenue according to the principles of revenue recognition and accounting for zerointerestbearing notes Let...
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Finance For Non-Finance People
Authors: Sandeep Goel
2nd Edition
0367185083, 9780367185084
