On May 1, 2017, Mary Smith Signed a $8000 Promissory

On May 1, 2017, Mary Smith signed a $8000 promissory note with Continental Bank. The note is due in one year with 9% interest. What journal entry should the bank prepare on May 1, 2017?

A) Debit Cash for $8000 and credit Notes Payable for $8000.
B) Debit Notes Receivable for $8720 and credit Cash for $8720.
C) Debit Notes Receivable for $8000 and credit Cash for $8000.
D) Debit Cash for $8720 and credit Accounts Receivable for $8720.