Problem 6-8 (AICPA Adapted) On January 1, 2020, Savage Company sold goods to another entity. The buyer signed a noninterest-bearing note requiring payment of P600,000 annually for seven years. The first payment was made on January 1, 2020. The prevailing rate of interest for this type of note at date of issuance was 10%. Present value Present value of ordinary Periods of 1 at 10% annuity of 1 at 10% 56 4.36 51 4.87 What amount should be reported as sales revenue? a. 3,216,000 b.. 2,922,CO0 C. 2,616,000 d. 2,142,000 Problem 6-9 (AICPA Adapted) On December 31, 2020, Humility Company sold a machine to another entity in exchange for a noninterest-bearing note requiring ten annual payments of P500,000. The buyer made the first payment on December 31, 2020. The market interest rate for similar notes at date of issuance was 8%. Present value Present value of ordinary Period of 1 at 8% annuity of 1 at 8% 0.50 6.25 10 0.46 6.71 On December 31, 2020, what is the carrying amount of note receivable? a. 2,250,000 b. 2,300,000 c. 3,125,000 d: 3,355,000 100