Question

ullbright Company sold goods to Blue Dirt Company for $400,000 in exchange for a 4-year, zero-interest-bearing note with a face amount of $629,406 (imputed rate of 12%). The goods have an inventory cost on Fullbright’s books of $240,000. What amount of Sales Revenue should Fullbright recognize in 2017?

Answer 1

The amount of Sales Revenue Fullbright should recognize in 2017 is $400,000

Step-by-step explanation:

The total value of $629,406 of the note includes the amount of interest revenue which would be $229,406 which is gotten from (629,406-400,000). The value of sales revenue will be $400,000

The amount of Sales Revenue Fullbright should recognize in 2017 is $400,000