On August 1, Amana company assigned $30,000 of its $56,000 of accounts receivable to get a loan equals to $28,000 from Arab Bank. Interest is 12% and payable monthly on thebeginning-of-period loan balance. A loan payment is remitted at the end of each month. Each payment includes principal and interest. The amount of eachloan payment equals the cash collected on receivables during the month plus interest on the loan balance.If $8,000 was collected on accounts receivable during August, the entry for the first loan payment would include a

Select one:

a. credit to Account Receivable Assigned of $8,000.

b. credit to Cash of $8,000.

c. debit to Interest Expense of $280.

d. debit to Notes Payable of $8,280.