Use the following information to answer questions ( 1-2 )

On 1/5/2017 Arab bank /main branch received abill (promissory) from Aqaba company of JD 40000 for discount . On 2/5/2017 Arab bank discounted that bill at 9% interest rate , 4% commission on discount, and .003 stamps . the bank crediting " Aqaba company credit current account" by the net value of the bill . the bill(promissory) maturity date on 1/10/2017 .

1. The credit side in the journal entry prepared on 1/5/2017 contains the following account: ABCD

A. 40000 Bills for discount

B. 40000 Endorsers bills for discount

C. 1600 Discount commission

D. 40000 Bills discounted

2. The journal entry prepared when bill is discounted on 2/5/2017 contains in credit side the following accounts: ABCD

A. 1500 interest on discount

1600 Discount commission,

120 stamps

36780 C.C.A- Aqaba company

B. 1800 interest on discount

1600 Discount commission,

120 stamps

36480 C.C.A- Aqaba company

C. 40000 Bills Discounted

D. 1500 interest on discount

666.6 Discount commission,

120 stamps

37713.4 C.C.A- Aqaba company