On May $31,2022,$ Ace Tractor Company sold a tractor to Joker Excavating in exchange for a $2-$year, $$500,000,$ non$-$interest$-$bearing note. Joker Excavating will make a $$300,000$ payment on May $31,2023$ and pay a lump$-$sum payment of $200,000$ on May $31,2024.$ Year end is December $31.$

Assume that your year$-$end adjusting entries are reversed. Do not show the reversal entry. If you do not know what a reversing journal entry is$,$ it is important that you find out before completing this question. Joker Excavating would normally pay an interest rate of $8\%.$

Required

Prepare all journal entries required for the note for the seller, Ace Tractor, from the initial sale to repayment. Count exact days for the year$-$end interest revenue adjustment. Calculate and journalize final amounts to the nearest dollar. Note that using the cash flow keys on your financial calculator is the easiest way to calculate the present value of this note. $(20$ marks$)$