The Palmer Corporation Sells Goods to Its Customers on a Note

The Palmer Corporation sells goods to its customers on a note basis with 10% credit terms and interest payable at the end of each quarter. All notes are due in one year. Palmer makes the following sales on July 1, 2014:
$\begin{array}{lccr}\text { Customer } & \text { Note Maturity } & \text { Interest Due } & \text { Interest Rate } \\\hline\text { J. Perez } & \$ 100,000 & \text { Quarterly } & 10 \% \\\text { P. Berg } & \$ 100,000 & - & \text { None }\end{array}$
To encourage sales, Berg was given a special deal on interest. Additional information:
Future value of $100,000 in one year (quarterly interest) is $110,381.
Present value of $100,000 for one year (quarterly interest) is $90,595.
-What amount will Palmer use to record the sale to Berg?

A) $90,000
B) $90,595
C) $100,000
D) $110,382