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%.

Required:

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.