Jin Company accepted a P1,000,000, 2% interest bearing note from BTS Company on December 31, 2020, in exchange for a machine with a list price of P800,000 and a cash price of P750,000. The note is payable on December 31, 2022. In its 2020 income statement, Jin should report the sale at A. P750,000 B. P1,040,000 C. P800,000 D. P1,000,000
Jin Company accepted a P1,000,000, 2% interest bearing note from BTS Company on December 31, 2020, in exchange for a machine with a list price of P800,000 and a cash price of P750,000. The note is payable on December 31, 2022. In its 2020 income statement, Jin should report the sale at A. P750,000 B. P1,040,000 C. P800,000 D. P1,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Jin Company accepted a P1,000,000, 2% interest bearing note from BTS Company on December 31, 2020, in exchange for a machine with a list price of P800,000 and a cash price of P750,000. The note is payable on December 31, 2022.
In its 2020 income statement, Jin should report the sale at
A. P750,000
B. P1,040,000
C. P800,000
D. P1,000,000
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