Problem $6-5($IAA$)$

Persia Company is a dealer in equipment. On January $1,2023,$ the entity sold an equipment in exchange for a noninterest bearing note requiring five annual payments of $P500,000.$

The first payment was made on December $31,2023.$ The market interest rate for similar notes was $8\%.$

PV of $1$ at $8\%$ for $5$ periods

PV of an ordinary annuity of $1$ at $8\%$ for $5$ periods

$0\mathrm{.}68$

$3\mathrm{.}99$

Required:

Prepare all journal entries for $2023.$

Determine the carrying amount of note receivable on December $31,2023.$