Dear Maine Consumers,
(a) December 31, 2007 Cash 36,000.00 Notes Receivable 72,000.00 Discount on Notes Receivable 16,155.90 Revenue from Services 91,844.10 To record revenue at the present value of the note plus the immediate cash payment: PV of $18,000 annuity @ 11% for 4 years ($18,000 X 3.10245) $55,844.10 Down payment 36,000.00 Capitalized value of services ... ................
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