Jeremy Grey loans Gary Grobowski $400,000. Grey accepts a 5%note, which requires quarterly interest...

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Accounting

Jeremy Grey loans Gary Grobowski $400,000. Grey accepts a 5%note, which requires quarterly interest payments for 10 years. Theday after receiving the 6^th interest payment, Greydecides to sell the note to Blue Hills Bank. Blue Hills Bank agreesto purchase it to yield an 8% return.
What is the amount that Jeremy Grey will receive on the sale ofthe note to Blue Hills Bank?
Prepare the entries that Jeremy Grey and Blue Hills Bank willmake on the day the note is sold to the bank.

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In: AccountingJeremy Grey loans Gary Grobowski $400,000. Grey accepts a 5%note, which requires quarterly interest payments...Jeremy Grey loans Gary Grobowski $400,000. Grey accepts a 5%note, which requires quarterly interest payments for 10 years. Theday after receiving the 6th interest payment, Greydecides to sell the note to Blue Hills Bank. Blue Hills Bank agreesto purchase it to yield an 8% return.What is the amount that Jeremy Grey will receive on the sale ofthe note to Blue Hills Bank?Prepare the entries that Jeremy Grey and Blue Hills Bank willmake on the day the note is sold to the bank.