On January 1, 2021, The Barrett Company purchased merchandise from a supplier. Payment was a noninterest-bearing note requiring five annual payments of $30,000 on each December 31 beginning on December 31, 2021, and a lump-stun payment of $50,000 on December 31, 2025. A 6% 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, 2021.

On January 1, 2021, The Barrett Company purchased merchandise from a supplier. Payment was a noninterest-bearing note requiring five annual payments of $30,000 on each December 31 beginning on December 31, 2021, and a lump-stun payment of $50,000 on December 31,2025 . A 6% 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, 2021