Please explain

P 6-10 Noninterest-bearing note; annuity and lump-sum payment LO6-3, LO6-7 The Barret Company purchased merchandise from a supplier Payment was a poninterest-bearing note requiring five annual payments of $20,000 on each December 31 beginning on December 31, 2018, and a lump-sum payment of $100,000 on December 31, 2022. 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, 2018