On January 1, 2013, Savage Company sold goods to another entity. The buyer signed a noninterest-bearing note requiring payment of P600,000 annually for seven years. The first payment was made on...

Extracted text: On January 1, 2013, Savage Company sold goods to another entity. The buyer signed a noninterest-bearing note requiring payment of P600,000 annually for seven years. The first payment was made on January 1, 2013. 9. The prevailing rate of interest for this type of note at date of issuance was 10%. Information on present value factors is as follows: Present value of ordinary annuity of 1 at 10% Periods Present value of 1 at 10% 6. .56 4.36 7 .51 4.87 What amount should be reported as sales revenue for January 2013? 20 | Page SAINT COLUMBAN COLLEGE Corner V. Cerilles - Sagun Streets, San Francisco District, Pagadian City Tel Nos: 2151799/2151800 | Fax No: 2141290 | Website: www.sccpag.edu.ph | E-mail: [email protected] а. 3,216,000 b. 2,922,000 c. 2,616,000 d. 2,142,000