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Business, 20.03.2020 09:56 jessezarate4513

On December 31, Key Co. received two $10,000 noninterest-bearing notes from customers in exchange for services rendered. The note from Alpha Co., which is due in 9 months, was made under customary trade terms, but the note from Omega Co., which is due in 2 years, was not. The market interest rate for both notes at the date of issuance is 8%. The present value of $1 due in 9 months at 8% is .944. The present value of $1 due in 2 years at 8% is .857. At what amounts should these two notes receivable be reported in Key’s December 31 balance sheet?

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On December 31, Key Co. received two $10,000 noninterest-bearing notes from customers in exchange fo...

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