On December 1, 2020, XYZ assigned on a non-notification basis accounts receivable of P3,000,000 to a bank in consideration for a loan of 80% of the receivables less a 5% service fee on the accounts assigned. The interest rate of the loan is 12% per annum. The company collected assigned accounts of P2,000,000 and 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 interest rate is 1% per month on the outstanding balance of the loan. In its December 31,2020 balance sheet, what amount of note payable should XYZ report as current liability? a) PO b) P400,000 c) P424,000 d) P1,024,000