Bento Corp took a $500,000 four-year 4% note receivable from acustomer in connection with a major sale transaction. The noterequires annual blended payment s to be paid at end of each year.The market interest rate is 4%.
1. Calculate the required blended payment. round to the nearestdollar.
2. Prepare a schedule that shows annual interest and theprincipal portion of the four payments.
3. Prepare journal entries to record the initial saletransaction and each payment.
