Moon Ltd. sells custom made furniture on 24 months' interest free terms to qualifyin On 30 June 2023, Moon Ltd. sells $71,600 of furniture to Jessie Ltd., which cost $40 by 30 June 2025. By 30 June 2024, only 40% of the ordered furniture was delivered. appropriate interest rate for this transaction is determined to be 11.20% per annum. perpetual system. By 30 June 2025, all payment was made, and the remaining furnit delivered. Required:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Moon Ltd. sells custom made furniture on 24 months' interest free terms to qualifying customers.
On 30 June 2023, Moon Ltd. sells $71,600 of furniture to Jessie Ltd., which cost $40,300, payable
by 30 June 2025. By 30 June 2024, only 40% of the ordered furniture was delivered. The
appropriate interest rate for this transaction is determined to be 11.20% per annum. Moon Ltd. uses
perpetual system. By 30 June 2025, all payment was made, and the remaining furniture was
delivered.
Required:
Question 4
Calculate the present value of the $71,600 to be received on 30 June 2025.
Transcribed Image Text:Moon Ltd. sells custom made furniture on 24 months' interest free terms to qualifying customers. On 30 June 2023, Moon Ltd. sells $71,600 of furniture to Jessie Ltd., which cost $40,300, payable by 30 June 2025. By 30 June 2024, only 40% of the ordered furniture was delivered. The appropriate interest rate for this transaction is determined to be 11.20% per annum. Moon Ltd. uses perpetual system. By 30 June 2025, all payment was made, and the remaining furniture was delivered. Required: Question 4 Calculate the present value of the $71,600 to be received on 30 June 2025.
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