Aaron Corporation issued a 4-year, $75,000, zero-interest-bearing note to Brown Company on January 1, 2014, receiving cash of $47,664.The implicit interest rate is 12%.

The note requires a 12/31/14 journal entry that includes

Select one:

a.

A credit to Cash of $5,720

b.

A credit to Discount on Note Payable of $6,834

c.

A credit to Interest Expense of $6,834

d.

A debit to Interest Expense of $5,720

e.

A debit to Discount on Note Payable of $6,834