Taft Company sells Lee Company a machine,the usual cash price of which is $10,000,in exchange for an $11,800 non-interest-bearing note due three years from date.If Taft records the note at $10,000,the overall effect will be
A) A correct sales price and correct interest revenue
B) A correct sales price and understated interest revenue
C) An understated sales price and understated interest revenue
D) An overstated interest price and understated interest revenue
Correct Answer:
Verified
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