On January 1, 2017, Ott Company sold goods to Fox Company. Fox signed a non-interest-bearing note requiring payment of P600,000 annually for seven years. The first payment was made on January 1, 2017. The prevailing rate of interest for this type of note at date of issuance was 10% PV of an ordinary annuity of 1 at 10% for 6 periods 4.36 PV of an ordinary annuity of 1 at 10% for 7 periods 4.87 What amount should be recorded as sales revenue in January 2017?
On January 1, 2017, Ott Company sold goods to Fox Company. Fox signed a non-interest-bearing note requiring payment of P600,000 annually for seven years. The first payment was made on January 1, 2017. The prevailing rate of interest for this type of note at date of issuance was 10% PV of an ordinary annuity of 1 at 10% for 6 periods 4.36 PV of an ordinary annuity of 1 at 10% for 7 periods 4.87 What amount should be recorded as sales revenue in January 2017?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2017, Ott Company sold goods to Fox Company. Fox signed a non-interest-bearing note requiring payment of P600,000 annually for seven years. The first payment was made on January 1, 2017.
The prevailing rate of interest for this type of note at date of issuance was 10% PV of an ordinary annuity of 1 at 10% for 6 periods 4.36
PV of an ordinary annuity of 1 at 10% for 7 periods 4.87
What amount should be recorded as sales revenue in January 2017?
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