Question

Webaccess lambsofthelatingate TRUITY SIGN UP GENIUS ENTS value: Ю00 points The Field Detergent Company sold merchandise to the Abel Company on June 30, 2016. Payment was made in the form of a noninterest-bearing note requiring Abel to pay $85.000 on June 30, 2018. Assume that a 10% interest rate properly reflects the time value of money in this situation nors1. Pyos FVA of $1, PVA of $1. FVAD of $1 and PVAD of S) (Use appropriate factor(s) from the tables provided.) Required: Calculate the amount at which Field should record the note receivable and corresponding sales revenue on June 30, 2016. Table or calculator function: PV of $1 Future value PV Note/Revenue

Answer 1

Field Detergent Company

Computation of the amount at which Field should record the note receivable and corresponding sales revenue on June 30, 2016:

Table or calculator function	PV of $1
Future Value	$85,000
period, n	2 years
interest rate, i	10%
PV note/revenue	$70,244
present value = 85,000 (P/F, 10%, 2)
85,000 x 0.8264 = $70,244

The note receivable = $70,244