Jackson bank lends Jabbour Clothing Company $125,000 on September 1. Jabbour signs a $125,000,6%, six-month...
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Accounting
Jackson bank lends Jabbour Clothing Company $125,000 on September 1. Jabbour signs a $125,000,6%, six-month note. The journal entry made by Jabbour on December 31, its fiscal year-end, is
A.debit Interest Payable and credit Cash for$2,500.
B.debit Interest Expense and credit Cash for$2,500.
C.debit Interest Payable and credit Interest Expense for $2,500.
D.debit Interest Expense and credit Interest Payable for $2,500.
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