Answer:
Merchandise inventory 20,388.82 debit
Note payable 20,388.82 credit
Step-by-step explanation:
First we calculate the present value of the annuity at 9% discount rate
C 5,400.00
time 6
rate 0.09
PV $26,404.1168
Then, we discount this value by the three year grace period between the purchase and the first payment
Maturity 26,404.12
time 3.00
rate 0.09000
PV 20,388.8228