Cambria Limited took a $$240,000$ two$-$year note recelvable from a customer in connection with a major inventory sale transaction on $1$ January $205.$ The note required annual end$-$of$-$year interest payments of $4\%,$ and the principal was due at the end of $206.$

$($PV of $$1,$ PVA of $$1,$ and PVAD of $$1.)($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

prepare journal entries to record the initial sale transaction and each payment on the books of Cambria, assuming that the market interest rate is $4\%.($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round time value factor to $5$ decimal places and final answers to the nearest whole dollar amount.$).$

Assume now that the market interest rate is $8\%.$ Calculate the present value of the note, and prepare a schedule that shows the annual Interest. $($Round time value factor to $5$ decimal places and final answers to the nearest whole dollar amount. Enter all answers in positive.$)$

Present value

$\backslash$table$[[\backslash$table$[[$Opening Net$],[$Liabilityl$],[$Receivable$]],\backslash$table$[[$Interest$],[$ExpenselRevenue$]],\backslash$table$[[$Interest Paid$/],[$Received$]],\backslash$table$[[$Discount$],[$Amortization$]],\backslash$table$[[$Closing Net$],[$Liabilityl$],[$Receivable$]]]]$

$3.$ Prepare journal entries to record the initial sale transaction and each payment on the books of Cambria, consistent with requ$$rement$2.$ Use the gross method to record the note. $($Uf no entry is required for a transactionlevent, select $"$No journal entry required" in thefirst account field. Round time value factor to $5$ decimal places and final answers to the nearest whole dollar amount.$)$

Prepare journal entries to record the initial sale transaction and each payment on the books of the customer who bought inventory and owes the note, consistent with requirement $2.($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round time value factor to $5$ decimal places and final answers to the nearest whole dollar amount.$)$