On January 1, 2020, Savage Company sold goods to another entity. The buyer signeda 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%Present value of ordinaryannuity of 1 at 10%PeriodsPresent value of 1 at 10%.564.367.514.87What amount should be reported as sales revenue?A.3,216,000B.2,922,000C.2,616,000D.2,142,000 Nova company reported the following receivables on December 31, 2020:Accounts receivable, net of P500,000 allowancefor doubtful accounts4,600,000190,000Interest receivableNotes receivable4,000,000* The notes receivable comprised:P1,000,000 note dated October 31, 2020, with principal and interest payable onOctober 31, 2021.P3,000,000 note dated March 31, 2020 , with principal and 8% interest payableon March 31, 2021* During 2021, sales revenue totaled P21,000,000, P18,000,000 cash was collectedfrom customers, and accounts receivable of P600,000 were written off. All saleswere made on a credit basis.* Doubtful accounts expense was recorded at year-end by adjusting the allowanceaccount to an amount equal to 10% of year-end accounts receivable.What amount should be reported as interest income for 2021?A.110,000B.240,000C.60,000D.80,000

Hi student Since there are multiple questions, we will answer only first question.

On January 1, 2020, 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, 2020. The prevailing rate of interest for this type of note at date of issuance was 10% 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? A.3,216,000 O B.2,922,000 O C.2,616,000 O D.2,142,000

On January 1, 2020, 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, 2020. The prevailing rate of interest for this type of note at date of issuance was 10% 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? A.3,216,000 O B.2,922,000 O C.2,616,000 O 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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