A Company Received Two One-Year Notes in Payment for Merchandise

A company received two one-year notes in payment for merchandise sold. One note had a face amount of $6,000 and was interest-bearing at an annual rate of 18 percent. The other note had a face amount of $7,080 and was non-interest-bearing (its implied interest rate was 18 percent) .

A) The total amount of cash ultimately to be received will be more for the interest-bearing note.
B) Both notes will cause the same total interest to be recognized.
C) The amount of interest revenue, which should be recognized, is more for the interest-bearing note.
D) The amount, which should be credited to sales revenue, is more for the non-interest-bearing note.
E) The non-interest-bearing note shows a higher book value immediately after the sale.