On January 1, 2019, Jouie Company sold goods to Rexford Company. Rexford signed a non-interest bearing note requiring payment of P700,000 annually for seven years. The first payment was made on January 1, 2019

The prevailing rate of interest for this type of note at the date of issuance was 10%

PV of an ordinary annuity of 1 at 10% for 6 periods4.36

PV of an ordinary annuity of 1 at 10% for 7 periods4.87

What is the carrying amount of the note receivable on January 1, 2019?