On October1, 2020 Sue's Carpet Service borrows $ 125.000from the Bank on a 3-month, $ XXXXXXXXXX, 8% note. What entry must Sue's Carpet Service make on December 31 before financial statements are...

On October1, 2020 Sue's Carpet Service borrows $ 125.000from the Bank on a 3-month, $ 125.000, 8% note. What entry must Sue's Carpet Service make on December 31 before financial statements are prepared?

A) Interest Expense................................................................. 2.500

Notes Payables.......................................................... 2.500

B) Interest Expense................................................................10.000

Interest Payable ..................................................... 10.000

C) Interest Expense..............................................................2.500

Interest Payable..................................................... 2.500

ID) Interest Payable.............................................................. 2.500

Interest Expense................................................... 2.500