On July 1, 2021, Company acquired equipment. Company paid $160,000 in cash on July 1, 2021, and signed a $640,000 noninterest-bearing note for the remaining balance which is due on July 1, 2022. An interest rate of 5% reflects the time value of money for this type of loan agreement. (PV factor n=1, i=5% is 0.95238) Which of the following should be included in the journal entry on July 1, 2021? (Round intermediate and final answer to nearest whole dollar amount.)

A) Credit: Notes payable, $609,523.

B) Debit: Equipment, $800,000.

C) Debit: Discount on notes payable, $30,477.

D) Credit: Notes payable, $609,523 and Debit: Discount on notes payable, $30,477.