Question: Bento Corporation took a 500 000 four year note receivable

Bento Corporation took a $ 500,000 four- year note receivable from a customer in connection with a major sale transaction. The note required annual blended payments, to be paid at the end of each year. The market interest rate is 4%.

1. Calculate the required blended payment. Round to the nearest dollar.
2. Prepare a schedule that shows the annual interest and principal portion of the four payments.
3. Prepare journal entries to record the initial sale transaction and each payment.

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  • CreatedFebruary 17, 2015
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