The journal entry a company uses to record the issuance of an interest-bearing note for the purpose of borrowing funds for the business is A) debit Accounts Payable; credit Notes Payable B) debit Cash; credit Notes Payable C) debit Notes Payable; credit Cash D) debit Cash and Interest Expense; credit Notes Payable 10. On October 30, Seba Salon, Inc. issued a 90-day note with a face amount of $60,000 to Reyes Products, Inc. for merchandise inventory. Determine the proceeds of the note assuming the note is discounted at 8%. A) $55,200 B) $64,800 C) $58,800 D) $61,200