Credit: notes payable 8 million
Borrow: accounts payable (or other receivables) 8 million
2, discounted back:
Borrow: bank deposits 7.6 million
Borrow: finance charges 0.4 million
Credit: accounts payable (or other receivables) 8 million million
Discounted interest must be discounted vouchers, no discounted vouchers, not deductible before tax. That means the $400,000 interest is also subject to $100,000 in corporate income tax (at a 25% rate).
To find a way to ask for "discount certificates", a little cost is worth it. If you don't understand, you can ask additional questions.