Equipment sales on installment agreement
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A company sells an old machine for $50K on 12/31/05. It had an original cost of $90,000. Sale terms were 10K down, 20K on 12/31 each of the next two years. 9% would be a fair rate for this transaction, although no mention of interest is made. Calculate the amount of the notes receivable net of the unamortized discount on 12/31/2005.
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Solution Summary
This solution provides calculations for notes receivable net for an unamortized account.
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** Answer attached as an Excel file... **
The receivables have to be shown at the amortized ...
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