Problem 5 (12%) In celebration of its 100th anniversary, Jordan's Furniture offered customers the following choice: 1. "take 15% off the list price of all furniture" OR 2. "take 72 months to pay with no interest" Let's assume that on April 1, Susan bought and had delivered a couch with a list price of $2,520. She opted for the no interest option, agreeing to make 72 monthly payments of $35 each. You initially thought that Jordan's should record $2,520 of sales revenue on April 1 because: revenue is earned when you provide a good or service. April 1 is the day Susan bought the couch and the day it was delivered to her. $2,520 is the amount of Susan's obligation to the store. However, a friend of yours, who had successfully completed ECON 127, disagrees with you. According to your friend, "only $2,142 should be recorded as sales revenue on April 1, with the remaining amount recorded in some other named revenue account over the next 72 months." A. How did your friend arrive at the $2,142 amount? B. What would your friend say it cost Susan to choose the "no interest financing? $ C. To what other-named revenue account would your friend be referring? D. Explain why your friend's answer is consistent with the principle that revenue is earned when you provide a good or service. 7