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My professor wants us to complete journal entries for this question but I can't get the interest entries to add up correctly. Can someone help
My professor wants us to complete journal entries for this question but I can't get the interest entries to add up correctly. Can someone help me with creating the journal entries and explaining how they did each entry?
Page 271 P5-9 Noninterest-bearing note; annuity and lump sum payment L05-3, 1058 On January 1, 2021, The Barrett Company purchased merchandise from a supplier. Payment was a noninterest-bearing note requiring five annual payments of $20,000 on cach December 31 beginning on December 31, 2021, and a lump-sum payment of $100,000 on December 31, 2025. A 10% interest rate properly reflects the time value of money in this situation. Required: Calculate the amount at which Barrett should record the note payable and corresponding merchandise purchased on January 1, 2021Step by Step Solution
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