Omega Chemicals Ltd. took a $500,000 two-year note receivable from a customer in connection with a major sale transaction on 1 May 20X7. The note required annual 30 April interest payments of 6%, and the principal was due on 30 April 20X9. Omega has a 31 December year-end.

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.) Present value $ 472,880 Opening Net Interest Liability Interest Paid Discount Closing Net Liability Receivable Expense/Revenue Received Amortization Receivable $ 20,000 $ 33,102 $ 13,102 $ 27,120 $ 500,000 $ 20,000 0 500,000 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.) View transaction list View journal entry worksheet NO Date General Journal Debit Credit 1 1 May 20X7 500.000 Notes receivable Discount on note receivable 27.120 Sales revenue 472.880 N 31 December 20X7 Interest receivable 13,333 Discount on note receivable 18.080 Interest revenue