Question
On October 1, 2020, a company (seller) sold equipment to a customer, in exchange for a zero-interest bearing note with a face value of $36,700,
On October 1, 2020, a company (seller) sold equipment to a customer, in exchange for a zero-interest bearing note with a face value of $36,700, with payment due in 12 months. The fair value of the equipment on the date of sale was $36,000. The amount of revenue to be recognized on this transaction in 2020 is ____ (hint: add sales revenue and interest revenue). Note: As a practical expedient, if the time period for payment is less than a year, companies are not required to use the effective interest method to determine interest revenue. Use the straight-line method instead.
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