On November 1, 2021, a company signed a $100,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2022. The company records the appropriate adjusting entry for the note on December 31, 2021. In recording the payment of the note plus accrued interest at maturity on May 1, 2022, the company would:
A) Debit Interest Expense, $2,000.
B) Debit Interest Expense, $1,000.
C) Debit Interest Payable, $2,000.
D) Debit Interest Expense, $3,000.
Answer: A
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