On July 1, 2020, Jolly Company sold goods in exchange for P2,000,000, 8-month, noninterest-bearing note receivable. At the time of the sale, the note's market rate of interest was 12%. The note was...

On July 1, 2020, Jolly Company sold goods in exchange for P2,000,000, 8-month, noninterest-bearing note receivable.

At the time of the sale, the note's market rate of interest was 12%. The note was discounted at 10% on September 1, 2020.

1. What amount was received from the note receivable discounting?

 a. 1,940,000

 b. 1,938,000

 c. 1,900,000

 d. 1,880,000

2. What is the loss on note receivable discounting?

 a. 100,000

 b. 125,000

 c. 25,000

 d. 0