Question - On March 1, 2018, Sun Devil Inc. sold goods to Bruins Company by accepting a 5-year, zero-interest-bearing note in the face amount of $1,062,939 with an imputed interest rate of 10%. Principal and interest are due at maturity. The goods have an inventory cost on Sun Devil's books of $400,000.
a. Determine how much Sales Revenue Sun Devil should record on March 1, 2018?
b. Using the information presented in #10 above, determine how much Interest Revenue will be recognized as of December 31, 2018?