Question: =+EX 11-2 Entries for discounting notes payable obj. 1 A borrower has two alternatives for a loan: (1) issue a $240,000, 60-day, 8% note or

=+EX 11-2 Entries for discounting notes payable obj. 1 A borrower has two alternatives for a loan: (1) issue a $240,000, 60-day, 8% note or

(2) issue a $240,000, 60-day note that the creditor discounts at 8%.

a. Calculate the amount of the interest expense for each option.

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