Question: On January 1 , 2 0 2 4 , The Barrel Company purchased merchandise from a supplier. Payment was a noninterest - bearing note requiring

On January 1,2024, The Barrel Company purchased merchandise from a supplier. Payment was a noninterest-bearing note requiring five annual payments of $26,000 on each December 31 beginning on December 31,2024, and a lump-sum payment of $160,000 on December 31,2028. A 9% 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.

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