Bill's Bikes Discounts a 90-Day,8%,$4,000 Note at a Bank at 12%.The

Multiple Choice

Bill's Bikes discounts a 90-day,8%,$4,000 note at a bank at 12%.The discount period is 50 days.It records the proceeds as:

A) debit Cash $4,012; credit Notes Receivable $4,000; credit Interest Income $12.
B) debit Cash $4,160; credit Notes Receivable $4,080; credit Interest Income $80.
C) debit Cash $4,068,credit Notes Receivable $4,000; credit Interest Income $68.
D) debit Cash $4,012; credit Notes Receivable $4,000,credit Interest Expense $12.