Omega Chemicals Ltd$.$ took a $$580,000$ two$-$year note receivable from a customer in connection with a major sale transaction on $1$ May $20$X$7.$ The note required annual $30$ April interest payments of $6\%,$ and the principal was due on $30$ April $20$X$9.$ Omega has a $31$ December year$-$end.

$($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 Omega, assuming that the market interest rate is $6\%.($Do not round intermediate calculations. 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 $7\%.$ Calculate the present value of the note, and prepare a schedule that shows the interest for each year of the note receivable. $($Round time value factor to $5$ decimal places and intermediate calculations 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 Omega, 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.$)$Omega Chemicals Ltd$.$ took a $$580,000$ two$-$year note receivable from a customer in connection with a major sale transaction on $1$ May $20$X$7.$ The note required annual $30$ April interest payments of $6\%,$ and the principal was due on $30$ April $20$X$9.$ Omega has a $31$ December year$-$end.

$($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 Omega, assuming that the market interest rate is $6\%.($Do not round intermediate calculations. 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 $7\%.$ Calculate the present value of the note, and prepare a schedule that shows the interest for each year of the note receivable. $($Round time value factor to $5$ decimal places and intermediate calculations 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 Omega, 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.$)$