Question 2 TOPIC 4 - REVENUE Not yet answered Marked out of 2.00 Flag question Homeware Ltd sells furniture and has a year end of 31 December. On 1 January 20X4, to stimulate sales in a traditionally quiet sales month, Homeware started a sales promotion offering interest-free credit for either two or three years for sales over $4,000. The following sales were entered into on 1 January 20X4: Sales of goods on two years interest-free credit terms (payment due in full 1 $450,000 January 20X6) Sales of goods on three years interest-free credit terms (payment due in full 1 $220,000 January 20X7) The effective interest rate for these sales was 10%. What is the correct recognition of revenue (to the nearest $000) arising from the sales promotion for the year ended 31 December 20X4? SELECT ONE CORRECT RESPONSE Select one: O a. Revenue from sale of goods of $670,000 and interest income of $67,000. O b. Revenue from sale of goods of $537,000 and interest income of $0. O c. Revenue from sale of goods of $537,000 and interest income of $67,000. O d. Revenue from sale of goods of $537,000 and interest income of $54,000. O e. Revenue from sale of goods of $670,000 and interest income of $0