Bento Corp took a $500,000 four-year 4% note receivable from a customer in connection with a major sale transaction. The note requires 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 nearest dollar.

2. Prepare a schedule that shows annual interest and the principal portion of the four payments.

3. Prepare journal entries to record the initial sale transaction and each payment.