Hey tutor please provide answer the accounting question On January 1, 2017, Ott Co. sold goods to FlynnCompany. Flynn signed a zero-interest-bearing noterequiring payment of $200,000 annually for sevenyears. The first payment was made on January 1,2017. The prevailing rate of interest for this type ofnote at date of issuance was 10%. Information onpresent value factors is as follows:Period Present ValuePresent Value of OrdinaryAnnuity of 1 at 10%of 1 at 10%60.56454.355370.51324.8684Ott should record sales revenue in January 2017 of:a) $871,060.b) $1,071,048.c) $714,000.d) $973,680.

Step 1: Define Non-Interest-Bearing NotesWhen a company receives a zero-interest-bearing note, the…

Answered: On January 1, 2017, Ott Co. sold goods…

Financial Accounting

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ISBN:9781305088436

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Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 11E

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