On December 1, 2014, Old Car Co. borrowed money at the bank by signing a 90-day non-interest-bearing note for $24,000 that was discounted at 8%. Which of the following entries is correct?
A. March 1, 2015
Note Payable 23,520
Cash 23,520
B. December 31, 2014
Interest Expense 160
Interest Payable 160
C. December 1, 2014
Cash 24,000
Note Payable 24,000
D. December 31, 2014
Interest Expense 160
Discount on Notes Payable 160