At the beginning of 2007, Finney Company received a three-year, zero-interest-bearing $1,000 trade note. The market rate for equivalent notes was 8% at that time. Finney reported this note as a $1,000 trade note receivable on its 2007 year-end statement of financial position and $1,000 as sales revenue for 2007. What effect did this accounting for the note have on Finney's net earnings for 2007, 2008, 2009, and its retained earnings at the end of 2009, respectively?

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The Answer of At the beginning of 2007, Finney Company received a three-year, zero-interest-bearing $1,000 trade note. The market rate for equivalent notes was 8% at that time. Finney reported this note as a $1,000 trade note receivable on its 2007 year-end statement of financial position and $1,000 as sales revenue for 2007. What effect did this accounting for the note have on Finney's net earnings for 2007, 2008, 2009, and its retained earnings at the end of 2009, respectively?

At the Beginning of 2007, Finney Company Received a Three-Year