Final answer:
Raven should report the 3-year note receivable as a noncurrent asset in its financial statements, as it is expected to be converted into cash after one year, which goes beyond a normal operating cycle.
Step-by-step explanation:
Raven should report the 3-year note receivable from a customer for goods sold as a noncurrent asset in its financial statements. This is because the note's maturity exceeds one year, which classifies it as a long-term financial resource for the company, expected to be converted into cash beyond the normal operating cycle of one year.
It should not be reported as a contra account to sales, as contra accounts are used to reduce the value of related accounts, not to report distinct assets. It is also not reported as current assets, which are assets expected to be converted into cash within a year, nor as other comprehensive income, as that typically includes revenues, expenses, gains, and losses that are excluded from net income.
A noncurrent asset is an asset that is expected to be converted to cash or used up beyond one year. Since the note receivable has a maturity period of 3 years, it qualifies as a noncurrent asset. Noncurrent assets are reported separately from current assets on the balance sheet.