Problem 7 .

Problem? On December 31,2018, Chang Company sold a machine in the ordinary course of business to Door Company in exchange for a noninterest bearing note requiring ten annual payments of P1,000,000. The entity made the rst payment on December 31,2018. The market interest rate for similar notes at date of issuance was 8%. PV of an ordinary annuity of 1 at 8% for 9 periods 6.25 PV of an ordinary annuity of 1 at 8% for 10 periods 6.71 1. What is the amount of sales revenue? 2. On December 31,2018, what is the carrying amount of the note receivable? 3. What is the interest income for 2019? 4. What is the carrying amount of the note receivable on December 31,2019