238. On December 31 , 2011 , Benton Company sold equipment to Cleveland , Inc ., accepting a $ 400, 000 non - interest bearing note receivable in full payment . The note is due on December 31 , 2014 . Cleveland , Inc . normally pays 10 % for its borrowed funds . The equipment is carried in Benton's perpetual inventory* records at 50 % of its cash selling price . The present value of $ 1 to be received ~ periods in the future = ] - ( 1 + r) " where r is the rate of interest per period . Required :` 2 . Prepare Benton's journal entries to record the sale on December 31 , 201 1 . b . Prepare Benton's journal entry on December 31 , 2012 necessitated by this transaction . C . At what amount would this note appear on Benton's December 31 , 2012 balance sheet