On March 1, 2018, Sun Devil Inc. sold goods to Bruins Company by accepting a 5-year, zero-interest-bearing note in the face amount of $1,062,939 with an imputed interest rate of 10%. Principal and interest are due at maturity. The goods have an inventory cost on Sun Devil's books of $400,000. a. Determine how much Sales Revenue Sun Devil should record on March 1, 2018. b. Using the information presented in #10 above, determine how much Interest Revenue will be recognized as of December 31, 2018.

On March 1, 2018, Sun Devil Inc. sold goods to Bruins Company by accepting a 5-year, zero-interest-bearing note in the face amount of $1,062,939 with an imputed interest rate of 10%. Principal and interest are due at maturity. The goods have an inventory cost on Sun Devil's books of $400,000. a. Determine how much Sales Revenue Sun Devil should record on March 1, 2018. b. Using the information presented in #10 above, determine how much Interest Revenue will be recognized as of December 31, 2018.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 15EB: Rain T-Shirts issued a $440,600 note on January 1, 2018 to a customer, Larry Potts, in exchange for...

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