USA Receipt of pledge receivable where it was booked with a discount to present value

[BRANDI BUFF]

We booked a pledge receivable last year which was due in 2 installments over 2 years. Our auditors discounted to present value the pledge amount for year. I have recorded receipt of the first installment just as a debit to cash and credit to receivable.

I know have a balance in my receivable of the pledge amount for year 2 less the discount to present value. Is this correct or do I need to adjust it back to the full pledge receivable amount since it is due in less than 1 year now?

 

[kirby]

When you booked the receivables at present value, then you should have had a schedule to record the accretion of the discount into income. If that was done then the receivables would have been at full value when it was time to collect them. So take a look at that.