P7.8 On December 31, 2020, Zhang Ltd. rendered services to Beggy Corp. at an agreed price of $91,844.10. In payment, Zhang accepted $36,000 cash and agreed to receive the balance in four equal instalments of $18,000 that are due each December 31. An interest rate of 11% is applicable.

Instructions a. Calculate the value of the note receivable at December 31, 2020, and prepare an instalment note receivable schedule.

b. Prepare the entries recorded by Zhang Ltd. for the sale and for the receipts including interest on the following dates:

1. December 31, 2020 2. December 31, 2021 3. December 31, 2022 4. December 31, 2023 5. December 31, 2024 c. From Zhang Ltd.'s perspective, what are the advantages of an instalment note compared with a noninterest-bearing note?