On January 1, 2024, The Barrel Company purchased merchandise from a supplier. Payment was a...
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Accounting
On January 1, 2024, The Barrel Company purchased merchandise from a supplier. Payment was a noninterest-bearing note requiring five annual payments of $39,000 on each December 31 beginning on December 31, 2024, and a lump-sum payment of $290,000 on December 31, 2028. A 10% interest rate properly reflects the time value of money in this situation. Calculate the amount at which Barrel should record the note payable and corresponding merchandise purchased on January 1, 2024.
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