16. A bank loaned Darden Company $10,000 on a 1-year, 6% note, but deducted the interest in advance. The journal entry made by Darden to record receipt of the cash would include a

a decrease in Notes Payable for $9,400.

a decrease in Notes Payable for $10,600.

an increase in Cash for $600.

an increase in Cash for $9,400.