Your company issues $500,000 in bonds at an issue price of 98. How should the issuer record the bonds? Multiple Choice debit cash $490,000; debit contra-liability account $10,000 to reflect the discount; credit bonds payable $500,000. debit cash $490,000; debit a loss account to reflect the discount $10,000; credit bonds payable $500.000. debit bonds payable $500,000; credit a contra-liability account to reflect the discount $10,000; credit cash $490,000. debit bonds payable $490,000; debit a contra-asset account to reflect the discount; credit cash $500,000.