How much is the unearned interest income on may

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Question 1: LINDT Corporation manufactures and sells electrical generators. On May 31, 2020, it sold an electrical generator costing ? 700,000 for ? 1,000,000. The buyer paid ?100,000 down and signed a ? 900,000 non-interest bearing note payable in three equal installments starting May 31, 2021. Assume the prevailing interest rate for a note of this type is 12%. The present value of an ordinary annuity of 1 for three periods is 2.4018. How much is the Unearned interest income on May 31,2020?

Reference no: EM132831322

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