why is there a discount? please explain how the last JE makes sense

EXAMPLE 2/1 10/1 10/1 Purchased inventory from Encino Company on account for $50,000. Awurai recorda purchases gross and uses a periodic inventory system Issued a $50,000, 12-month, 8% note to Encino in payment of account Borrowed $59,600 from the Shore Bank by signing a 12-month, zero-interest-bearing $82,920 note 9/1inventerypurchas 59,600 59,600 A/P 59,500 10/1A/P N/P 59,600 (this is just to change the A/P into a N/P) 59,600 10/1 cash Discount N/P 3,320 62,920