9. On January 1, 2013, 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, 2013. The prevailing rate of interest for this type of note at date of issuance was 10%. Information on present value factors is as follows: Present value of ordinary annuity of 1 at 10% Periods Present value of 1 at 10% 6 .56 4.36 7 .51 4.87 What amount should be reported as sales revenue for January 2013? 20 | P age SAINT COLUMBAN COLLEG Corner V. Cerilles - Sagun Streets, San Francisco District, Pagadian City Tel Nos: 2151799/2151800 | Fax No: 2141290 | Website: www.sccpag.edu.ph | E-mail: sccpc1957@gmail.com а. 3,216,000 b. 2,922,000 c. 2,616,000 d. 2,142,000

9. On January 1, 2013, 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, 2013. The prevailing rate of interest for this type of note at date of issuance was 10%. Information on present value factors is as follows: Present value of ordinary annuity of 1 at 10% Periods Present value of 1 at 10% 6 .56 4.36 7 .51 4.87 What amount should be reported as sales revenue for January 2013? 20 | P age SAINT COLUMBAN COLLEG Corner V. Cerilles - Sagun Streets, San Francisco District, Pagadian City Tel Nos: 2151799/2151800 | Fax No: 2141290 | Website: www.sccpag.edu.ph | E-mail: sccpc1957@gmail.com а. 3,216,000 b. 2,922,000 c. 2,616,000 d. 2,142,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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