Exercise $7-21($Algo$)$ Long$-$term notes receivable $[$L$07-7]$

On January $1,2024,$ Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wright received a

note requiring payment of $$525,000$ by Elmira on December $31,2026.$ The effective interest rate is $8\%.$

Note: Use appropriate factor$($s$)$ from the tables provided. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Required:

How much sales revenue would Wright recognize on January $1,2024,$ for this transaction?

Prepare journal entries to record the sale of merchandise on January $1,2024($omit any entry that might be required for the cost

of the goods sold$),$ the December $31,2024,$ interest accrual, the December $31,2025,$ interest accrual, and receipt of payment of

the note on December $31,2026.$

Complete this question by entering your answers in the tabs below.

Prepare journal entries to record the sale of merchandise on January $1,2024($omit any entry that might be required for the cost of the

goods sold$),$ the December $31,2024,$ interest accrual, the December $31,2025,$ interest accrual, and receipt of payment of the note on

December $31,2026.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round

intermediate calculations and round your final answers to nearest whole number.

$1$ Record the sale of goods on January $1,2024$ in exchange

for the long term note.

$2$ Record the accrual of interest in $2024.$

$3$ Record the accrual of interest in $2025.$

$4$ Record the accrual of interest in $2026.$

$5$ Record the collection of the note in $2026.$