Question
Please explain how to answer the following questions. The numbers were changed to avoid violating the honor code USE THE FOLLOWING INFORMATION TO ANSWER THE
Please explain how to answer the following questions. The numbers were changed to avoid violating the honor code
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (2)QUESTIONS:
On March 1, 2018,Sun Devil Inc.sold goods to Bruins Company by accepting a5-year,zero-interest-bearingnote in the face amount of $1,062,939with an imputed interest rate of 10%.Principal and interest are due at maturity.The goods have an inventory cost on Sun Devil's books of $400,000.
(PV of$1(10%,5n)=.62092
PVOA of$(10%,5n)=3.79079)
a. Determine how much Sales Revenue Sun Devil should record on March 1, 2018?
b. How much Interest Revenue will be recognized as of December 31, 2018?
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