How much should Ford record as Sales

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Question - Ford Corporation, an equipment distributor, sells a piece of machinery with a list price of P800,000 to Territory Company. Per agreement, Territory will pay P850,000 in one year evidenced by a note. Ford normally sells at cash price equivalent to 90% of list price. The note has a market rate of 12%. How much should Ford record as Sales? (The PV of 1 at 12% for 1 year is 0.89)

a. P756,500

b. P850,000

c. P720,000

d. P800,000

Reference no: EM132978107

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