On January $1,2024,$ Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wright received a note requiring payment of $$522,000$ by Elmira on December $31,2026.$ The effective interest rate is $5\%.$ Journal entry worksheet

Record the sale of goods on January $1,2024$ in exchange for the long term

note.

Note: Enter debits before credits. Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

Record the accrual of interest in $2024.$

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$December $31,2024,,,],[,,,],[,,,],[,,,],[,,,]]$ Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

Record the accrual of interest in $2025.$

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$December $31,2025,,,],[,,,],[,,,],[,,,],[,,,]]$ Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

Record the accrual of interest in $2026.$

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$December $31,2026,,,],[,,,],[,,,],[,,,]]$Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

Record the collection of the note in $2026.$

Note: Enter debits before credits.

Note: Use appropriate factor$($s$)$ from the tables provided. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Required:

How much sales revenue would Wright recognize on January $1,2024,$ for this transaction?

Prepare journal entries to record the sale of merchandise on January $1,2024($omit any entry that might be required for the cost of the goods sold$),$ the December $31,2024,$ interest accrual, the December $31,2025,$ interest accrual, and receipt of payment of the note on December $31,2026.$