Question

Dern Company recently sold a large order of tables to Knoll Furniture Store. Terms of the sale require Knoll to sign a noninterest-bearing note of $21,000 with payment due in three years. A rate of 9% reflects the appropriate interest rate for a loan of this type of loan. At what amount should Dern and Knoll value the note receivable/payable and corresponding sales revenue/inventory? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round final answer to the nearest whole dollars.)

Answer 1

Given data that page 1 Desjn company sjecently sold a basge Og desy of tables to knoll funitugje stogle

Page 2 Geagting notes of $ 21,000 with payment due in 3 Yeaut Pv of $ 1 table to be used , at the Integsection of 9.1 and 3 yeasts Amount of sales = 21,000 * pv of $1 at 9.1. and 3 yeases = 21,000 X 0.74218 = $ 16,216