Cambria Limited took a $$300,000$ two$-$year note receivable from a customer in connection with a major inventory sale transaction on $1$ January $20$X$5.$ The note required annual end$-$of$-$year interest payments of $4\%,$ and the principal was due at the end of $20$X$6.$

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

Required:

$1.$ 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.$)$

$2.$ 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.$)$

$3.$ Prepare journal entries to record the initial sale transaction and each payment on the books of Cambria, consistent with requirement $2.$ Use the gross method to record the note. $($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.$)$

$4.$ This part of the question is not part of your Connect assignment.

$5.$ 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.$)$