On January 1, 2024, The Barrel Company purchased merchandise from a supplier. Payment was a noninterest bearing note requiring five annual payments of $20,000 on each December 31 beginning on December 31, 2024, and a lump-sum payment of $100,000 on December 31, 2028. A 10% interest rate properly reflects the time value of money in this situation.

Required:
Calculate the amount at which Barrel should record the note payable and corresponding merchandise purchased on January 1, 2024.