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The Palmer Corporation sells goods to its customers on a note basis with % credit terms and interest payable at the end o each quarter.
The Palmer Corporation sells goods to its customers on a note basis with % credit terms and interest payable at the end o each quarter. Al notes are due in one year. Palmer makes the following sales on uly 1. 2018, Note Interest Interest Customer Maturity .Perez$100,000 Quarterly 18% P.Berg 100,800 Due Rate Negotiated To encourage sales, Berg was given a special deal on interest. Additional information: Future value of $100,000 in one year (quarterly interest) is $110,381 Present value of $100,000 for one year (quarteriy interest) is $90,595. What amount will Palmer use to record the sale to Perez? Multiple Choice $90,000 $90,595 $100,000 $110,381
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