Clancy Co. accepted a two-year noninterest-bearing note for $1,166,400 on January 1, 2020. The note was accepted as payment for merchandise with a fair value of $1,000,000. The effective interest rate is 8%. The cash collection on December 31, 2021, would be recorded as: Multiple Choice Discount on notes receivable 86,400 Cash 1,166,400 Notes receivable 1,166,400 Interest revenue 86,400 Cash 1,166,400 Notes receivable 1,166,400 Cash 1,166,400 Notes receivable 1,000,000 Discount on notes receivable 166,400 Cash 1,166,400 Discount on notes receivable 166,400 Notes receivable 1,166,400 Interest revenue 166,400