On December 1, 2020, San Fernando Company assigned on a nonnotification basis accounts receivable of P5,000,000 to a bank in consideration for a loan of 80% of the accounts less a 5% service fee on the accounts assigned. San Fernando signed a note for the bank loan. On December 31, 2020, San Fernando collected assigned accounts of P2,000,000 less discount of P200,000. San Fernando remitted the collections to the bank in partial payment for the loan. The bank applied first the collection to the interest and the balance to the principal. The agreed interest is 1% per month on the loan balance. In its December 31, 2020 statement of financial position, San Fernando should report note payable as a current liability at

A. 2,240,000

B. 2,250,000

C. 3,250,000

D. 2,040,000