A customer signs a noninterest-bearing note, promising to pay the company $11,664 in two years....
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Accounting
A customer signs a noninterest-bearing note, promising to pay the company $11,664 in two years. The payment amount is based on an annual interest rate of 8%, which the company believes is appropriate, resulting in the present value of the note of $11,664 0.85734 = $10,000. Which amount should the company record as sales revenue from this transaction to be in accordance with generally accepted accounting principles (GAAP)?
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