Sew & More sells sewing machines and sewing supplies. The company recently ran a sales promotion on sewing machines that allowed customers to purchase a new sewing machine using store credit. The...

Sew & More sells sewing machines and sewing supplies. The company recently ran a sales promotion on sewing machines that allowed customers to purchase a new sewing machine using store credit. The terms of the contract stated that customers would make 12 monthly payments that included a 6% annual interest rate. On the date of each sale, Sew & More should record.

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  No revenue until the contract is paid in full.

  
  
  
  


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  Sales revenue equal to the sales price of the sewing machine, interest revenue equal to the total amount of interest for the contract, and a receivable for the total of the sales price plus the interest.
  
  


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  revenue equal to the sales price of the sewing machine plus the total interest to be collected and a receivable for the same amount.
  
  


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  revenue equal to the sales price of the sewing machine and a receivable for the same amount.