P$12-23.$ Accounting for notes payable $($Medium $-25$ minutes$)$You are the accountant for Simply the Best Fireworks. The company has been negotiating with various car dealers in an attempt to get the best deal on a new Vroom Vroom XKY$.$ The purchasing manager provides you with a summary of three offers and asks you to analyze them to determine the best arrangement.The options available are to:i$.$ Pay $$40,000$ cash.ii$.$ Issue an interest$-$free note for $$43,200$ repayable in $36$ equal monthlyinstallments.iii. Issue a $9\%$ note for $$38,000$ repayable in $36$ equal monthly installments.For a car loan, Simply's bank will charge the company a nominal rate of $6\%$ per annum, payable monthly.Required:a$.$ Analyze the offers in terms of the cost of the purchase expressed in present value terms.b$.$ Independent of part $($a$),$ prepare the journal entry to record $($i$)$ the purchase of the automobile assuming that Simply issued the $$38,000$ note, and $($ii$)$ the first payment on the loan.