Eric Company borrowed $40,000 on a four-year, 8% installment note. Eric will record the issuance of this note with the following entry 1. a Cash 36,800 3,200 Discount on Notes Payable Notes Payable 40,000 b. Cash 40,000 Interest Payable Notes Payable 3.200 36,800 c. Cash 43,200 Notes Payable 43,200 d. Cash 40,000 Notes Payable 40,000