On January 1, 2020, Hamid Company sold goods to Khaled Company. Khaled signed a noninterest-bearing note requiring payment of P600, 000 annually for seven years. The first payment was made on January 1, 2020. The prevailing rate of interest for this type of note at date of issuance was 10% PV of an ordinary annuity of I at 10% for 6 periods 4.36 PV of an ordinary annuity of I at 10% for7 periods 4.87 What amount should be recorded as sales revenue in January 2020?
On January 1, 2020, Hamid Company sold goods to Khaled Company. Khaled signed a noninterest-bearing note requiring payment of P600, 000 annually for seven years. The first payment was made on January 1, 2020. The prevailing rate of interest for this type of note at date of issuance was 10% PV of an ordinary annuity of I at 10% for 6 periods 4.36 PV of an ordinary annuity of I at 10% for7 periods 4.87 What amount should be recorded as sales revenue in January 2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2020, Hamid Company sold goods to Khaled Company. Khaled signed a noninterest-bearing note requiring payment of P600, 000 annually for seven years. The first payment was made on January 1, 2020.
The prevailing rate of interest for this type of note at date of issuance was 10%
PV of an ordinary annuity of I at 10% for 6 periods 4.36
PV of an ordinary annuity of I at 10% for7 periods 4.87
What amount should be recorded as sales revenue in January 2020?
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