4) Harry Jones accepted a six-month, 8%,$40,000 note receivable from a customer on July 1,20X1. Jones has an arrangement with the National Bank to discount selected customer notes at 10% without recourse. If the note were discounted on August 1 under the terms of agreement with National Bank, which one of the following journal entries would Jones record? A) DR Cash $39,867 CR Note payable-National Bank $39,867 B) DR Cash $40,000 CR Note receivable $40,000 C) DR Cash $39,867 DR Interest expense 133 CR Note receivable $40,000 D) DR Cash $39,867 DR Loss on sale of note receivable 133 CR Note payable- National Bank $40,000