On January 1, 2019, Color Company agreed to sell a diamond to a customer at a special price of $4,000. In return, the customer signed a non-interest bearing note payable to Color Company. Payment terms were $800 on January 1, 2019, and $800 each January 1 from 2020 to 2023. Color normally charges 8% interest to its customers.
What amount of revenue and accounts receivable should Color recognize on January 1, 2019?

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The Answer of On January 1, 2019, Color Company agreed to sell a diamond to a customer at a special price of $4,000. In return, the customer signed a non-interest bearing note payable to Color Company. Payment terms were $800 on January 1, 2019, and $800 each January 1 from 2020 to 2023. Color normally charges 8% interest to its customers.
What amount of revenue and accounts receivable should Color recognize on January 1, 2019?

On January 1, 2019, Color Company Agreed to Sell a Diamond